To what extent is the mutual waiver of a jury trial applicable under the Body20 franchise agreement?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- MUTUAL WAIVER OF JURY TRIAL AND PUNITIVE DAMAGES. If, and then only to the extent, required by the Minnesota Franchises Law, Sections 16.4 and 16.5 of the Franchise Agreement are deleted.
4. MUTUAL WAIVER OF JURY TRIAL AND PUNITIVE DAMAGES. The following is added to the end of Sections 16.4 and 16.5 of the Franchise Agreement:
HOWEVER, THIS SECTION SHALL NOT ACT AS A CONDITION, STIPULATION OR PROVISION PURPORTING TO BIND ANY PERSON ACQUIRING ANY FRANCHISE TO WAIVE COMPLIANCE WITH ANY PROVISION OF THE ILLINOIS FRANCHISE DISCLOSURE ACT AT SECTION 705/41 OR ILLINOIS REGULATIONS AT SECTION 200.609.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, the mutual waiver of a jury trial within the franchise agreement is subject to certain state laws. Specifically, in Minnesota, Sections 16.4 and 16.5 of the Franchise Agreement, which likely contain the waiver, are deleted if and to the extent required by the Minnesota Franchises Law. In Illinois, the waiver of a jury trial and punitive damages does not bind any person acquiring a franchise to waive compliance with any provision of the Illinois Franchise Disclosure Act.
For prospective Body20 franchisees, this means that the enforceability of a mutual jury trial waiver depends on the specific state in which they operate their franchise. In Minnesota, the waiver may be entirely voided by state law. In Illinois, while a waiver might exist, it cannot force a franchisee to relinquish their rights under the Illinois Franchise Disclosure Act. This ensures that franchisees in these states retain certain legal protections and avenues for dispute resolution, regardless of what the standard franchise agreement stipulates.
It is important for potential Body20 franchisees to understand the specific legal riders and addenda that apply to their state. These riders modify the standard franchise agreement to comply with local laws, particularly concerning dispute resolution and franchisee rights. Franchisees should consult with a legal professional to fully understand their rights and obligations in their specific state, as these waivers and legal stipulations can significantly impact how disputes are handled.