factual

What rights of Chesters franchisees in Minnesota cannot be reduced or abrogated by the Franchise Disclosure Document or agreements?

Chesters Franchise · 2025 FDD

Answer from 2025 FDD Document

Minn. Stat. § 80C.21 and Minn. Rule Part 2860.4400J prohibit the franchiser from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring the franchisee to consent to liquidated damages, termination penalties or judgment notes. In addition, nothing in the Franchise Disclosure Document or agreement(s) can abrogate or reduce (1) any of the franchisee's rights as provided for in Minnesota Statute 80Cor (2) franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.

Source: Item 23 — **RECEIPTS (FDD pages 48–197)

What This Means (2025 FDD)

According to Chesters's 2025 Franchise Disclosure Document, Minnesota Statute 80C.21 and Minnesota Rule Part 2860.4400J protect franchisees from being required to conduct litigation outside of Minnesota, waive a jury trial, or consent to liquidated damages, termination penalties, or judgment notes. Furthermore, the Franchise Disclosure Document and any agreements cannot reduce or eliminate any rights provided to the franchisee under Minnesota Statute 80C. These documents also cannot reduce or eliminate a franchisee's rights to any procedure, forum, or remedies available under Minnesota law.

For a prospective Chesters franchisee in Minnesota, this means that certain fundamental legal rights and protections are guaranteed by state law and cannot be undermined by the franchise agreement. These protections ensure that franchisees have access to fair legal processes and remedies within the state, preventing Chesters from imposing unfair or restrictive conditions related to legal disputes or financial penalties.

This type of protection is relatively common in franchise law, as many states have enacted franchise-specific laws to balance the power dynamic between franchisors and franchisees. These regulations aim to prevent franchisors from exploiting their dominant position by including overly burdensome or one-sided terms in the franchise agreement. Franchisees should be aware of these protections and consult with an attorney to fully understand their rights under state law.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.