What is Black Bear Diner prohibited from requiring regarding litigation for Minnesota franchisees?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
Minnesota Statutes, Section 80C.21 and Minnesota Rule 2860.4400(J) prohibit the franchisor from requiring litigation to be conducted outside Minnesota, requiring waiver of jury trial, or requiring the franchisee to consent to liquidated damages, termination penalties or judgment notes.
In addition, nothing in the Franchise Disclosure Document or agreements can abrogate or reduce any of franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, Minnesota franchisees have specific protections under Minnesota Statutes, Section 80C.21 and Minnesota Rule 2860.4400(J). Black Bear Diner is prohibited from requiring that litigation be conducted outside of Minnesota.
Additionally, Black Bear Diner cannot require Minnesota franchisees to waive their right to a jury trial. The franchise agreement also cannot force a franchisee to consent to liquidated damages, termination penalties, or judgment notes. These stipulations ensure that Minnesota franchisees retain certain legal rights and protections within their own jurisdiction.
Furthermore, the FDD clarifies that nothing within the document or related agreements can diminish any rights provided to the franchisee under Minnesota Statutes, Chapter 80C. This extends to the franchisee's rights to any procedure, forum, or remedies available under Minnesota law. This provision aims to protect the franchisee by ensuring that Minnesota law takes precedence over conflicting terms in the franchise agreement.