factual

In Minnesota, is Bumper Man permitted to require franchisees to conduct litigation outside of Minnesota?

Bumper_Man Franchise · 2025 FDD

Answer from 2025 FDD Document

MINNESOTA

    1. Minnesota Statutes, Section 80C.21 and Minnesota Rule 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, injunctive relief, termination penalties or judgment notes. In addition, nothing in the Franchise Disclosure Document or agreement(s) can abrogate or reduce any of franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.

Source: Item 22 — CONTRACTS (FDD page 45)

What This Means (2025 FDD)

According to Bumper Man's 2025 Franchise Disclosure Document, Minnesota Statutes, Section 80C.21 and Minnesota Rule 2860.4400(J) explicitly prohibit Bumper Man from requiring franchisees to conduct litigation outside of Minnesota. This means that any clause in the franchise agreement that forces a franchisee to resolve disputes in a non-Minnesota court is unenforceable in Minnesota. This protection ensures that Minnesota franchisees are not unduly burdened by having to travel to other states to defend their rights.

This provision is designed to protect franchisees from potential disadvantages associated with litigating in unfamiliar jurisdictions. It helps to level the playing field, ensuring that franchisees can pursue legal remedies without incurring excessive costs or facing logistical challenges. The law also prevents Bumper Man from requiring waiver of a jury trial, or requiring the franchisee to consent to liquidated damages, injunctive relief, termination penalties or judgment notes.

Furthermore, the FDD states that nothing in the Franchise Disclosure Document or agreements can reduce any of franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction. This reinforces the franchisee's rights under Minnesota law, ensuring that the franchise agreement does not inadvertently or intentionally diminish those rights. This protection is crucial for maintaining a fair balance of power between Bumper Man and its franchisees in Minnesota.

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.