What aspects of litigation, jury trials, and financial penalties are Churchs Chicken prohibited from requiring of the Developer, according to Minnesota Statute 80C.21 and Minnesota Rule 2860.4400(J)?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| Minnesota Rules 2860.4400(D) prohibits Cajun from requiring Developer to assent to a | |
|---|---|
| general release. | |
| 3. The following sentences are added to the end of Section 23: | |
| Minnesota Statute 80C.21 and Minnesota Rule 2860.4400(J) prohibit Cajun from requiring | |
| litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring | |
| Developer 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 Developer’s rights as provided for in Minnesota Statute 80C or (2) | |
| Developer’s rights to any procedure, forum, or remedies provided for by the laws of the | |
| jurisdiction. |
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to the 2025 Churchs Chicken Franchise Disclosure Document, Minnesota Statute 80C.21 and Minnesota Rule 2860.4400(J) place specific restrictions on what Churchs Chicken can require of its developers in Minnesota. Specifically, Churchs Chicken is prohibited from requiring that litigation be conducted outside of Minnesota.
Additionally, Churchs Chicken cannot mandate that developers waive their right to a jury trial. This ensures that developers have the option to have disputes decided by a jury of their peers, rather than solely by a judge or arbitrator.
Furthermore, Churchs Chicken is not allowed to require developers to consent to liquidated damages, termination penalties, or judgment notes. These protections ensure that developers are not subjected to potentially unfair or excessive financial burdens in the event of disputes or termination of the agreement. The FDD also states that nothing in the Franchise Disclosure Document or agreements can reduce any of the Developer’s rights as provided for in Minnesota Statute 80C or the Developer’s rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.