factual

To what jurisdiction do franchisees irrevocably consent for litigation of excepted disputes with Body20?

Body20 Franchise · 2025 FDD

Answer from 2025 FDD Document

ise Agreement:

However, with respect to franchises governed by Minnesota law, we will comply with Minn. Stat. Sec. 80C.14, Subds. 3, 4 and 5 which require, except in certain specified cases, that you be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice of non-renewal of this Agreement.

  1. NOTIFICATION OF INFRINGEMENT AND CLAIMS. The following sentence is added to the end of Section 9.1 of the Franchise Agreement:

Provided you have complied with all provisions of this Agreement applicable to the Marks, we will protect your right to use the Marks and will indemnify you from any loss, cots or expenses arising out of any claims, suits or demands regarding your use of the Marks in accordance with Minn. Stat. Sec. 80C 12, Subd. 1(g).

  1. GOVERNING LAW. The following statement is added at the end of Section 16.1 of the Franchise Agreement:

NOTHING IN THIS AGREEMENT WILL ABROGATE OR REDUCE ANY OF YOUR RIGHTS UNDER MINNESOTA STATUTES CHAPTER 80C OR YOUR RIGHT TO ANY PROCEDURE, FORUM OR REMEDIES THAT THE LAWS OF THE JURISDICTION PROVIDE.

  1. CONSENT TO JURISDICTION.

Source: Item 23 — RECEIPT (FDD pages 74–251)

What This Means (2025 FDD)

According to the 2025 Body20 Franchise Disclosure Document, the jurisdiction for litigation of excepted disputes varies depending on the state where the franchisee is located. For franchisees in Minnesota, the franchise agreement specifies that nothing within the agreement overrides a franchisee's rights under Minnesota statutes, meaning that Minnesota franchisees retain their rights to any procedure, forum, or remedies provided by Minnesota law.

For franchisees in Rhode Island, the rider to the franchise agreement states that franchisees have the right to sue in Rhode Island for claims arising under the Rhode Island Franchise Investment Act, subject to arbitration obligations. Similarly, for franchisees in Maryland, the rider specifies that franchisees have the right to bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, also subject to arbitration obligations.

For franchisees in Illinois, any provision in the agreement that designates jurisdiction and venue in a forum outside of Illinois is void, according to the Illinois Franchise Disclosure Act. However, the agreement may still allow for arbitration to take place outside of Illinois. These stipulations ensure that franchisees' rights are protected under their respective state laws, while also acknowledging the possibility of resolving disputes through arbitration.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.