In Minnesota, can Chocolate Fish Coffee require a waiver of a jury trial from its franchisees?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
The franchisee cannot consent to the franchisor obtaining injunctive relief. The franchisor may seek injunctive relief. See Minn. Rules 2860.4400J. Also, a court will determine if a bond is required.
The Limitations of Claims section must comply with Minnesota Statutes, Section 80C.17, Subd. 5, and therefore the applicable provision of the Agreement is amended to state "No action may be commenced pursuant to Minnesota Statutes, Section 80C.17 more than three years after the cause of action accrues."
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to the 2024 Chocolate Fish Coffee Franchise Disclosure Document, the Minnesota Rider to the Franchise and Multi-Unit Development Agreement states that the franchisee cannot consent to the franchisor obtaining injunctive relief. The franchisor, Chocolate Fish Coffee, however, may seek injunctive relief. Additionally, a court will determine if a bond is required.
The rider also stipulates that the Limitations of Claims section must comply with Minnesota Statutes, Section 80C.17, Subd. 5. Therefore, the applicable provision of the Agreement is amended to state that "No action may be commenced pursuant to Minnesota Statutes, Section 80C.17 more than three years after the cause of action accrues." This means that any legal action a franchisee might want to bring against Chocolate Fish Coffee under Minnesota Statutes, Section 80C.17 must be started within three years of when the cause of action arises.
In practical terms, this means that Chocolate Fish Coffee franchisees in Minnesota have certain protections and limitations regarding legal actions. They cannot be forced to consent to Chocolate Fish Coffee obtaining injunctive relief, and any claims they bring under Minnesota Statutes, Section 80C.17 have a three-year statute of limitations. These stipulations are designed to ensure compliance with Minnesota state law and provide a more balanced legal framework for the franchise relationship.