What does Minnesota Statute 80C.21 and Minnesota Rule 2860.4400(J) prohibit Cinnaholic from requiring of its franchisees?

According to Cinnaholic's 2025 Franchise Disclosure Document, Minnesota Statute 80C.21 and Minnesota Rule 2860.4400(J) protect franchisees by preventing Cinnaholic from mandating that litigation be conducted outside of Minnesota. These laws also prohibit Cinnaholic from requiring franchisees to waive their right to a jury trial or to consent to liquidated damages, termination penalties, or judgment notes.

These regulations ensure that Cinnaholic franchisees operating in Minnesota have the right to resolve disputes within the state's legal system, maintaining accessibility and potentially reducing costs associated with out-of-state litigation. The prohibition against requiring a waiver of a jury trial ensures that franchisees can have their case heard by a jury if they choose.

Additionally, the restrictions on liquidated damages, termination penalties, and judgment notes protect franchisees from potentially unfair or excessive financial burdens imposed by Cinnaholic. These protections collectively aim to create a more balanced and equitable relationship between Cinnaholic and its Minnesota franchisees, safeguarding their legal rights and financial interests.