For Bor Restoration franchises, where must court litigation take place?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
STATE OF MINNESOTA
The following Minnesota-specific language must be included in an exhibit attached to the Franchise Disclosure Document and also to the franchise agreements:
- Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J) prohibit the franchisor from requiring litigation to be conducted outside Minnesota, requiring waiver of a 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 agreement(s) can abrogate or reduce (1) any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or (2) franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
- With respect to franchises governed by Minnesota law, the franchisor will comply with Minnesota Statutes, Section 80C.14, Subd. 3-5, which require (except in certain specified cases) (1) that a franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal of the franchise agreement and (2) that consent to the transfer of the franchise will not be unreasonably withheld.
- The franchisor will protect the franchisee's rights to use the trademarks, service marks, trade names, logotypes, or other commercial symbols or indemnify the franchisee from any loss, costs, or expenses arising out of any claim, suit, or demand regarding the use of the name.
- Minnesota considers it unfair not to protect the franchisee's right to use the trademarks. Refer to Minnesota Statutes, Section 80C.12, Subd. 1(g).
- Minnesota Rules 2860.4400(D) prohibits a franchisor from requiring a franchisee to assent to a general release.
- The franchisee cannot consent to the franchisor obtaining injunctive relief. The franchisor may seek injunctive relief. See Minn. Rules 2860.4400J. Also, a court will determine if a bond is required.
- The Limitations of Claims section must comply with Minnesota Statutes, Section 80C.17, Subd. 5. 3.
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to the 2024 Bor Restoration Franchise Disclosure Document, Minnesota franchisees are protected by Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J), which prevent Bor Restoration from requiring litigation to occur outside of Minnesota. This statute also protects Minnesota Bor Restoration franchisees from having to waive a jury trial or consent to liquidated damages, termination penalties, or judgment notes.
This protection extends to ensuring that nothing in the Franchise Disclosure Document or any agreements can diminish or remove any of the franchisee's rights as provided by Minnesota Statutes, Chapter 80C, or their rights to any procedure, forum, or remedies available under Minnesota law. Bor Restoration must also comply with Minnesota Statutes, Section 80C.14, Subd. 3-5 regarding termination and non-renewal notices, as well as consent to franchise transfers.
Furthermore, Bor Restoration will protect the franchisee's right to use trademarks and provide indemnity against claims related to the use of the Bor Restoration name. The franchisee also cannot consent to Bor Restoration obtaining injunctive relief, and a court will determine if a bond is required. These stipulations are specific to franchisees operating within the State of Minnesota.