What does Minnesota law prohibit Card My Yard from requiring regarding litigation location?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
MINNESOTA
Notwithstanding anything to the contrary set forth in theFranchise Agreement,the following provisions willsupersede and apply to all franchises offered and sold in the State of Minnesota:
Any provision in the Franchise Agreement which would require you to assent to a release, assignment, novation or waiver that would relieve any person from liability imposed by Minnesota Statutes, Sections 80C.01 to 80C.22 will be void to the extent that the contractual provision violates this law.
Minnesota Statute § 80C.21 and Minnesota Rule 2860.4400J prohibit us from requiring litigation to be conducted outside Minnesota.
In addition, nothing in the disclosure document or Franchise Agreement can abrogate or reduce any of your rights as provided for in Minnesota Statutes, Chapter 80C, or your rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
Any provision in the Franchise Agreement which would require you to waive your rights to any procedure, forum or remedies provided for by the laws of the State of Minnesota is deleted from any Agreement relating to franchises offered and sold in the State of Minnesota; provided, however, that this paragraph will not affect the obligation in the Agreement relating to exclusive mediation.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, Minnesota Statute § 80C.21 and Minnesota Rule 2860.4400J prohibit Card My Yard from requiring that litigation be conducted outside of Minnesota. This means that if a Card My Yard franchisee in Minnesota has a legal dispute with the franchisor that results in litigation, the franchisee cannot be forced to litigate the matter in a state other than Minnesota. This protects the franchisee's right to resolve disputes within their home state.
Additionally, the FDD states that nothing in the disclosure document or 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. Any provision in the Franchise Agreement that would require a franchisee to waive their rights to any procedure, forum, or remedies provided for by the laws of the State of Minnesota is deleted from any Agreement relating to franchises offered and sold in the State of Minnesota.
However, this does not affect the obligation in the Agreement relating to exclusive mediation. This means that while Card My Yard cannot force a Minnesota franchisee to litigate outside of Minnesota, the franchisee may still be required to participate in mediation. Mediation is a process where a neutral third party helps the parties reach a settlement. It is less formal and less expensive than litigation. This provision ensures that Minnesota franchisees retain all rights and protections under Minnesota law, while still allowing for alternative dispute resolution methods like mediation.