factual

What does Minnesota law prohibit Chicken Guy from requiring regarding litigation venue?

Chicken_Guy Franchise · 2025 FDD

Answer from 2025 FDD Document

Minnesota Statute § 80C.21 and Minnesota Rule 2860.4400J prohibit Chicken Guy from requiring litigation to be conducted outside Minnesota. In addition, nothing in our disclosure document or agreements can abrogate or reduce any of Developer's rights as provided for in Minnesota Statutes, Chapter 80C, or Developer's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–46)

What This Means (2025 FDD)

According to Chicken Guy's 2025 Franchise Disclosure Document, Minnesota Statute § 80C.21 and Minnesota Rule 2860.4400J prohibit Chicken Guy from requiring that litigation be conducted outside of Minnesota. This protection is in place if the offer or sale of a franchise was made in Minnesota, if the franchisee is a resident of Minnesota, and/or if the development territory is located in Minnesota. This stipulation is added to the end of Sections 22.C-D of the development agreement.

This means that if a Chicken Guy franchisee in Minnesota has a legal dispute with the company, they cannot be forced to travel to another state to resolve the issue in court. The legal proceedings must take place within Minnesota, providing a more convenient and cost-effective option for the franchisee. This is particularly beneficial for franchisees who may not have the resources to litigate a case in a distant location.

Furthermore, the FDD states that nothing in the disclosure document or agreements 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. This ensures that Minnesota franchisees retain all the legal rights and protections afforded to them under Minnesota law, regardless of what the franchise agreement might otherwise state. This provision aims to protect franchisees from potentially overreaching or unfair terms in the franchise agreement.

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.