What happens if there is a conflict between the Cinnaholic Franchise Agreement and Minnesota law regarding franchisee rights?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
nchise Agreement. Therefore, Initial Franchise Fees must be paid to us in full by you immediately upon the commencement of your CINNAHOLIC® business.
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- Minnesota Statute 80C.21 and Minnesota Rule 2860.4400(J) prohibit the franchisor 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.
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- Minnesota considers it unfair to not protect the franchisee's right to use the trademarks. Refer to Minnesota Statute 80C.12 Subd. 1(G).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 27–35)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, Minnesota law takes precedence over the franchise agreement regarding franchisee rights. Specifically, if a dispute goes to litigation (excluding arbitration or mediation), the franchise agreement cannot diminish any rights, procedures, forums, or remedies granted to the franchisee under Minnesota law. This protection ensures that Cinnaholic franchisees in Minnesota retain all rights provided to them by the state's statutes and regulations.
Minnesota statutes 80C.21 and Minnesota Rule 2860.4400(J) explicitly prevent Cinnaholic from requiring franchisees to conduct litigation outside of Minnesota, waive their right to a jury trial, or consent to liquidated damages, termination penalties, or judgment notes. This safeguards the franchisee's ability to resolve disputes within their own jurisdiction and protects them from potentially unfair contractual terms. The FDD emphasizes that nothing within the franchise documents can reduce or eliminate a franchisee's rights as provided by Minnesota Statute 80C.
This provision offers significant protection to Cinnaholic franchisees in Minnesota, ensuring that their rights under state law are fully respected and cannot be undermined by the franchise agreement. Prospective franchisees should carefully review Minnesota Statute 80C and Minnesota Rule 2860.4400(J) to fully understand their rights and protections under the law.