Does the Minnesota Addendum permit Carvel to require litigation with a franchisee to be conducted outside of Minnesota?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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 explicitly prohibits Carvel from requiring franchisees to conduct litigation outside of Minnesota. This protection is rooted in Minn. Stat. Sec 80C.21 and Minn. Rule 2860.4400J.
This provision ensures that Minnesota Carvel franchisees are not forced to bear the additional costs and burdens associated with litigating disputes in a foreign jurisdiction. It allows them to pursue legal remedies within their home state, where they are likely to have better access to legal representation and a more thorough understanding of local laws and procedures.
Furthermore, the addendum reinforces that nothing within the Franchise Disclosure Document or the Franchise Agreement can diminish any rights granted to franchisees under Minnesota Statutes Chapter 80C. This encompasses their rights to specific legal processes, forums, or remedies as provided by Minnesota law. This offers a significant advantage to prospective Carvel franchisees in Minnesota, ensuring that their legal rights are protected within the state.