Does the Minnesota Addendum to the Carvel Franchise Agreement allow litigation to be required outside of Minnesota?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
Minn. Stat. § 80C.21 and Minn. Rule 2860.4400J prohibit us from requiring that litigation be conducted outside Minnesota. In addition, nothing in the Disclosure Document or Franchise Agreement abrogate or reduce any of your rights provided for in Minnesota statutes Chapter 80C, or your rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
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- Section 20 (Miscellaneous) of the Franchise Agreement will be supplemented by the addition of the following Sections, which will be considered an integral part of the Agreement:
- 20.9 Minn. Stat. Sec 80C.21 and Minn. Rule 2860.4400J prohibit us from requiring litigation to be conducted outside Minnesota. Nothing in the Franchise Disclosure Document or this Agreement can abrogate or reduce any of your rights provided for in Minnesota Statutes, Chapter 80C, or your rights to any procedure, forum or remedies provided for by the laws of the jurisdiction.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, the Minnesota Addendum to the Franchise Agreement includes provisions that protect franchisees from being forced to litigate outside of Minnesota. Specifically, Minn. Stat. Sec 80C.21 and Minn. Rule 2860.4400J prohibit Carvel from requiring that litigation be conducted outside Minnesota. This protection is also reinforced by stating that nothing in the Franchise Disclosure Document or the Franchise Agreement can reduce any rights provided to the franchisee under Minnesota Statutes, Chapter 80C, or their rights to any procedure, forum, or remedies provided by the laws of the jurisdiction. This ensures that Minnesota Carvel franchisees have the right to resolve disputes within their own state.
This provision is beneficial for prospective Carvel franchisees in Minnesota as it ensures they will not have to incur additional expenses and logistical challenges associated with pursuing legal action in another state. It allows franchisees to handle legal matters within a familiar jurisdiction, potentially reducing costs and increasing convenience. This is particularly important for small business owners who may not have the resources to engage in protracted legal battles across state lines.
It is important for prospective franchisees to understand that while the Minnesota Addendum provides this protection, it applies specifically to litigation. Other aspects of the Franchise Agreement, such as governing law, may still be influenced by other states' laws, but the venue for litigation remains within Minnesota. This addendum aims to balance Carvel's interests with the legal rights and protections afforded to franchisees under Minnesota law.