Does Minnesota Statutes Section 80C.21 allow Cinnaholic franchisees to submit non-arbitrable matters to the jurisdiction of courts in Minnesota?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 31 of the Franchise Agreement is amended by adding the following provision at the end of such Section: "Under Minnesota Statues Section 80C.21, this section will not in any way abrogate or reduce any rights of the Franchisee as provided for in Minnesota Statutes, Chapter 80C, including the right to submit non-arbitrable matters to the jurisdiction of the courts in Minnesota.
Minnesota statues Section 80C.21 and Minnesota Rule 2860.4400J prohibit the Franchisor from requiring litigation to be conducted outside Minnesota."
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, Minnesota Statute Section 80C.21 ensures that the franchise agreement does not diminish a franchisee's rights under Minnesota Statutes, Chapter 80C. This includes the right to bring non-arbitrable issues before Minnesota courts. This protection is explicitly stated as an amendment to Section 31 of the standard franchise agreement.
This provision means that Cinnaholic franchisees in Minnesota retain their legal rights within the state, regardless of what the standard franchise agreement might otherwise stipulate. It prevents Cinnaholic from enforcing mandatory arbitration for all disputes, allowing franchisees to pursue certain claims in court if they fall outside the scope of arbitration.
Furthermore, Minnesota statutes prohibit Cinnaholic from requiring franchisees to conduct litigation outside of Minnesota, reinforcing the franchisee's right to a local legal forum. This addendum ensures that Minnesota franchisees are not forced to litigate in a distant or inconvenient jurisdiction, providing an additional layer of protection for their legal rights.