Regarding jurisdiction and venue for Brueggers Bagels franchisees in Minnesota, does Section 80C.21 of the Minnesota Statutes allow BFC to require litigation to be conducted outside of Minnesota?

According to Brueggers Bagels's 2025 Franchise Disclosure Document, Minnesota Statutes Section 80C.21 and Minnesota Rule 2860.4400J explicitly prohibit Brueggers Franchise Corporation (BFC) from requiring franchisees to conduct litigation outside the state of Minnesota. This protection ensures that Minnesota franchisees have the right to submit legal matters to the jurisdiction of Minnesota courts, safeguarding their legal rights within the state. This provision is included as an amendment to various sections of the franchise agreements, including those related to jurisdiction and venue. This applies to the License Agreement, the Franchise Agreement, and the Development Agreement. The addendum confirms that it will only be effective if the agreements and the relationship between the franchisee and BFC meet Minnesota's jurisdictional requirements.

This stipulation is crucial for prospective Brueggers Bagels franchisees in Minnesota as it prevents the franchisor from imposing unfavorable or distant legal venues. It ensures that any legal disputes can be resolved within the state, potentially reducing costs and logistical challenges for the franchisee. This protection aligns with the broader intent of Minnesota Statutes, Chapter 80C, which aims to protect franchisees' rights and provide a fair legal framework for franchise relationships.

Furthermore, the FDD emphasizes that no statement, questionnaire, or acknowledgment signed by a franchisee can waive any claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor. This reinforces the franchisee's rights and prevents unintentional or coerced waivers of legal protections. The inclusion of these provisions in the Minnesota Addendum to the franchise agreements underscores Brueggers Bagels's acknowledgment of and compliance with Minnesota franchise law.

In addition to venue protections, Minnesota law also affects termination and non-renewal. Brueggers Bagels must comply with Minnesota Statutes Clause 80C.14, Subdivisions 3, 4, and 5, which require, except in certain cases, that Minnesota franchisees be given 90 days notice of termination (with 60 days to cure) and 180 days notice for non-renewal of the Franchise Agreement. These regulations provide franchisees with time to address any issues before termination or to prepare for non-renewal, offering a degree of security and stability in their franchise operations.