factual

In Minnesota, does the Burger King franchise agreement allow Burger King to require litigation to be conducted outside of Minnesota?

Burger_King Franchise · 2025 FDD

Answer from 2025 FDD Document

Minnesota Statutes, Section 80C.21 and Minnesota Rule 2860.4400(J) prohibit BKC from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring Franchisee to consent to liquidated damages, termination penalties or judgment notes. In addition, nothing in this Agreement 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 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 109–124)

What This Means (2025 FDD)

According to Burger King's 2025 Franchise Disclosure Document, Minnesota Statutes protect franchisees and developers from being forced into litigation outside of Minnesota. Specifically, Section 80C.21 of the Minnesota Statutes and Minnesota Rule 2860.4400(J) explicitly prohibit Burger King from requiring that litigation be conducted outside the state. This protection extends to both individual franchisees and developers in Minnesota.

This provision ensures that Burger King franchisees and developers in Minnesota are not subjected to the inconvenience and increased costs associated with litigating disputes in a distant jurisdiction. It allows them to pursue legal remedies within their own state, where they are likely to be more familiar with the legal landscape and have easier access to legal representation. This is a significant benefit for franchisees, as it levels the playing field in potential legal disputes with the franchisor.

The FDD also states that nothing in the franchise agreement can reduce any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or their rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction. This reinforces the protection afforded to Burger King franchisees under Minnesota law, ensuring that their legal rights and options are fully preserved. This protection also extends to developers in Minnesota, as stated in the amendment to the Development Agreement.

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.