In Minnesota, does Byrider have the right to require litigation to be conducted outside of Minnesota, require waiver of a jury trial, or require franchisees to consent to liquidated damages, termination penalties, or judgment notes?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J might prohibit Byrider Franchising Partners from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring you to consent to liquidated damages, termination penalties or judgment notes. In addition, nothing in the Franchise Disclosure Document or Franchise Agreement can abrogate or reduce any of your rights as provided for in Minnesota Statutes 1984, Chapter 80C, or your rights to any procedure, forum or remedies provided for by the laws of the jurisdiction. Those provisions also provide that no condition, stipulations or provision in the Franchise Agreement will in any way abrogate or reduce any of your rights under the Minnesota Franchises Law, including, if applicable, the right to submit matters to the jurisdiction of the courts of Minnesota.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, Minnesota Statutes might prevent Byrider from enforcing certain provisions in its franchise agreement. Specifically, Byrider may be prohibited from requiring franchisees to litigate disputes outside of Minnesota, from enforcing jury trial waivers, and from requiring consent to liquidated damages, termination penalties, or judgment notes.
The FDD clarifies that nothing in the franchise agreement can reduce a franchisee's rights under Minnesota Statutes Chapter 80C, including their rights to specific procedures, forums, or remedies available under Minnesota law. This ensures that Minnesota franchisees retain all protections afforded to them by state law.
Furthermore, the franchise agreement explicitly states that it will not diminish any franchisee rights under Minnesota Statutes Chapter 80C or their entitlement to legal procedures, forums, or remedies provided by Minnesota law. The document also mentions that provisions in Sections 20.7 and 20.8 of the Franchise Agreement, which likely pertain to jury trial and punitive damage waivers, are deleted in their entirety for Minnesota franchisees. This reinforces the protection of franchisee rights within the state.
In summary, Byrider's FDD indicates that Minnesota franchisees receive specific legal protections that may override standard provisions in the franchise agreement, particularly regarding litigation, jury trials, and certain financial penalties.