If a Carbones Pizzeria restaurant is not located in Minnesota, does the Minnesota Franchise Act apply?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
Except to the extent governed by the United States Trademark Act of 1946 (Lanham Act; 15 U.S.C. § 1050 et seq.), or the United States Arbitration Act (9 U.S.C. § 1 et seq.), this Agreement shall be governed by the laws of the State of Minnesota. The parties agree, however, that if the Franchisee is not a resident of Minnesota, or if the Restaurant is not located in Minnesota, then they hereby waive the provisions of
the Minnesota Franchise Act and the regulations promulgated thereunder. If the Minnesota Franchise Act does not apply to the Franchise relationship created hereby, but there is a statute in the state in which the Restaurant is situated that specifically governs relationships between franchisees and franchisors and that law would otherwise apply, then that particular law shall apply in lieu of the foregoing.
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, the Minnesota Franchise Act may not apply if the restaurant is not located in Minnesota. Specifically, the franchise agreement states that if the franchisee is not a resident of Minnesota, or if the restaurant is not located in Minnesota, then the franchisee waives the provisions of the Minnesota Franchise Act and its regulations. This means that the franchise relationship will be governed by other applicable laws.
However, if there is a statute in the state where the Carbones Pizzeria restaurant is located that specifically governs relationships between franchisees and franchisors, that particular law will apply instead. This ensures that the franchise relationship is still regulated by a relevant state law, even if the Minnesota Franchise Act is waived.
For a prospective Carbones Pizzeria franchisee, this clause is important because it clarifies which laws will govern the franchise agreement based on their residency and the restaurant's location. If neither the franchisee nor the restaurant is in Minnesota, they should be aware of the franchise laws in their own state, as those laws will likely take precedence. It is advisable to consult with a legal professional to understand the implications of waiving the Minnesota Franchise Act and to ensure compliance with the relevant laws in their specific jurisdiction.