factual

Under Minnesota Statutes, what is Brain Balance prohibited from requiring regarding litigation?

Brain_Balance Franchise · 2025 FDD

Answer from 2025 FDD Document

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 liquidate 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.

Source: Item 23 — RECEIPTS (FDD pages 72–292)

What This Means (2025 FDD)

According to Brain Balance's 2025 Franchise Disclosure Document, Minnesota Statutes Section 80C.21 and Minnesota Rules 2860.4400(J) explicitly prohibit Brain Balance from mandating that litigation be conducted outside of Minnesota. This means that if a Brain Balance franchisee in Minnesota has a legal dispute with the company, they cannot be forced to resolve the issue in another state. This provision ensures that Minnesota franchisees have the right to pursue legal action within their own jurisdiction, providing them with certain protections under Minnesota law.

Additionally, Brain Balance is prohibited from requiring a franchisee to waive their right to a jury trial. This ensures that franchisees have the option to have their case decided by a jury of their peers, rather than solely by a judge. Furthermore, Brain Balance cannot require franchisees to consent to liquidated damages, termination penalties, or judgment notes. Liquidated damages and termination penalties are pre-determined amounts of money that a franchisee would have to pay in the event of a breach of contract or termination of the franchise agreement. Judgment notes are agreements where a franchisee consents in advance to a judgment being entered against them.

These protections afforded to Minnesota Brain Balance franchisees are designed to create a fairer balance of power between the franchisor and the franchisee. By preventing Brain Balance from imposing these specific requirements, Minnesota law aims to safeguard the rights and interests of franchisees operating within the state. This addendum also states that nothing in the Franchise Disclosure Document or agreements can reduce any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or the franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.

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.