Does Minnesota law allow Cinnaholic franchisees to be required to litigate disputes outside of Minnesota?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 27–35)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, Minnesota law protects franchisees from being forced to litigate disputes outside of the state. Specifically, Minnesota Statute 80C.21 and Minnesota Rule 2860.4400(J) explicitly prohibit Cinnaholic from requiring franchisees to conduct litigation outside of Minnesota. This provision ensures that Cinnaholic franchisees can pursue legal action within their home state, avoiding the increased costs and logistical challenges of out-of-state litigation.
This protection extends to ensuring that nothing in the franchise disclosure document or any agreements can diminish a franchisee's rights under Minnesota Statute 80C or their access to procedures, forums, or remedies provided by Minnesota law. This means that Cinnaholic cannot use the franchise agreement to circumvent Minnesota's legal protections for franchisees.
In practical terms, this addendum ensures that if a Cinnaholic franchisee in Minnesota has a dispute with the franchisor that leads to litigation, the franchisee will have the right to pursue that litigation in Minnesota courts. This provision provides a significant benefit to Minnesota franchisees by ensuring a local venue for resolving legal disputes, which can save time and money.