Does the Minnesota Addendum to the Brueggers Bagels Development Agreement allow litigation to be conducted outside of Minnesota?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
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- Jurisdiction and Venue. Section 20.2 is amended to add the following: Under Minnesota Statutes Section 80C.21, this section will not in any way abrogate or reduce any rights of the Franchisee as provided for in Minnesota Statutes, Chapter 80C, including the right to submit matters to the jurisdiction of the courts in Minnesota. Minnesota Statutes Section 80C.21 and Minnesota Rule 2860.4400J prohibit BFC from requiring litigation to be conducted outside Minnesota.
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- Time Limit on Filing. Section 21 is amended to add the following: Notwithstanding anything to the contrary in this Section, any claim or action arising out of or relating to the Minnesota Franchises Law must be commenced within three (3) years from the occurrence of the facts giving rise to the claim or action, or the claim or action is barred.
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- Entire Agreement; Disclosure Statement and Disclaimer; Acknowledgments. Section 17, Section 19, and Section 22 are each amended by adding the following: Pursuant to Minn. Stat. § 80C.21 and Minn. Rule Part 2860.4400J, nothing in the Agreement shall in any way abrogate or reduce any of your rights as provided for in Minnesota Statutes, Chapter 80C.
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- No statement, questionnaire, or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including, fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed with the franchise.
Statutes §§ 80C.01 - 80C.22. Except as expressly modified by this Addendum, the Development Agreement remains unmodified and in full force and effect. BRUEGGER'S FRANCHISE CORPORATION DEVELOPER [print company name]: By: By: Print Name:
Title: Title:
- This Addendum will have effect only if the Development Agreement and/or the
relationship between you and BFC satisfy all of the jurisdictional requirements of Minnesota
Source: Item 23 — RECEIPTS (FDD pages 61–335)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, the Minnesota Addendum to the Development Agreement addresses the location of litigation. Specifically, it states that Minnesota Statutes prohibit Brueggers Bagels from requiring franchisees to conduct litigation outside of Minnesota. This protects the franchisee's right to have legal disputes settled within the state. This stipulation is found in Item 23, which covers receipts and addenda related to state-specific regulations. The same protection is afforded in the Franchise Agreement and the License Agreement.
This provision ensures that Brueggers Bagels franchisees in Minnesota are not forced to bear the additional costs and burdens of litigating disputes in a different state. It aligns with Minnesota Statutes Section 80C.21 and Minnesota Rule 2860.4400J, which aim to protect the rights of franchisees within the state. This addendum modifies the original agreement to comply with Minnesota law, giving precedence to Minnesota law in case of conflicts.
Furthermore, the Minnesota Addendum includes a clause regarding the time limit for filing claims related to Minnesota franchise law. Any claim or action must be commenced within three years of the occurrence of the facts giving rise to the claim. This time limit is important for franchisees to note, as failure to act within this period will bar their claim. This addendum also clarifies that no statement or acknowledgment signed by the franchisee can waive claims under applicable state franchise law or disclaim reliance on statements made by the franchisor.