In Minnesota, can Cinnaholic require litigation to be conducted outside of Minnesota, require waiver of a jury trial, or require the franchisee to consent to liquidated damages, termination penalties or judgment notes?

According to Cinnaholic's 2025 Franchise Disclosure Document, Minnesota Statute 80C.21 and Minnesota Rule 2860.4400(J) explicitly prohibit Cinnaholic from including terms in its franchise agreement that would: require franchisees to conduct litigation outside of Minnesota, mandate a waiver of a jury trial, or force franchisees to consent to liquidated damages, termination penalties, or judgment notes. This protection is in place to safeguard the rights of franchisees operating in Minnesota.

This means that any Cinnaholic franchise agreement for a location in Minnesota cannot legally force a franchisee to resolve disputes in a specific out-of-state venue or waive their right to a jury trial. Additionally, the franchisee cannot be compelled to agree to pre-determined financial penalties in the event of termination or other adverse outcomes. These regulations ensure that Minnesota franchisees have access to fair legal recourse within their own state.

Furthermore, the FDD states that nothing in the disclosure document or agreements can reduce any of the franchisee's rights as provided for in Minnesota Statute 80C or the franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction. This reinforces the state's commitment to protecting franchisees' legal rights and ensuring they are not undermined by the franchise agreement.