Under what circumstances does Minnesota law prohibit Bft from requiring litigation to be conducted outside of Minnesota?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J prohibits us from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial or requiring the Area Developer or Franchisee to consent to liquidated damages, termination penalties or judgment notes. In addition, nothing in the Disclosure Document, Multi-Unit Agreement or Franchise Agreement can abrogate or reduce any of Area Developer's or Franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or Area Developer's or Franchisee's rights to any procedure, forum or remedies provided for by the laws of the jurisdiction.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, Minnesota law places restrictions on where litigation can be conducted. Specifically, Minn. Stat. Section 80C.21 and Minn. Rule 2860.4400J generally prohibit Bft from requiring that litigation with franchisees or area developers be conducted outside of Minnesota. However, this prohibition is not absolute, as it contains exceptions for certain specified cases.
This means that if a dispute arises between a Bft franchisee or area developer in Minnesota and the franchisor, the franchisee or area developer generally has the right to have the case heard in Minnesota, unless an exception applies. This protection is designed to prevent Bft from forcing franchisees or area developers into distant or inconvenient legal forums.
Furthermore, the FDD states that nothing within the disclosure document, the Multi-Unit Agreement, or the Franchise Agreement can reduce or eliminate any rights granted to the area developer or franchisee under Minnesota Statutes, Chapter 80C. This reinforces the protection of franchisees' and area developers' rights within the state. Prospective franchisees should seek legal counsel to understand the specific exceptions and how they might apply to their individual circumstances.