Does Minnesota law allow Cinnaholic to require litigation to be conducted 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 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, Minnesota Statute 80C.21 and Minnesota Rule 2860.4400(J) explicitly prohibit Cinnaholic from requiring franchisees to conduct litigation outside of Minnesota. This protection ensures that Cinnaholic franchisees operating in Minnesota can resolve legal disputes within the state's jurisdiction.
This provision is further reinforced by an addendum to the franchise agreement for Minnesota franchisees. Section 2 of this addendum amends Section 31 of the Franchise Agreement, reiterating that Minnesota Statute 80C.21 will not diminish any rights of the franchisee under Minnesota Statutes, Chapter 80C. This includes the right to bring non-arbitrable matters before Minnesota courts.
In practical terms, this means a Cinnaholic franchisee in Minnesota cannot be forced to travel to another state or country to resolve legal disputes with the franchisor. This protects the franchisee from potentially higher legal costs and the inconvenience of litigating in an unfamiliar jurisdiction. This is a significant benefit for franchisees as it ensures a level playing field and access to local legal resources.