factual

Is City Publications allowed to require litigation to be conducted outside of Minnesota?

City_Publications Franchise · 2025 FDD

Answer from 2025 FDD Document

FOR THE STATE OF MINNESOTA:

    1. ITEM 13 of the Disclosure Document is amended as follows:
    • ◼ As required by the Minnesota Franchise Act, Minn. Stat. Sec. 80C.12(g), Franchisor will reimburse the Franchisee for any costs incurred by the Franchisee in the defense of the Franchisee's right to use the Marks, so long as the Franchisee was using the Marks in the manner authorized by Franchisor, and so long as Franchisor is timely notified of the claim and is given the right to manage the defense of the claim including the right to compromise, settle or otherwise resolve the claim, and to determine whether to appeal a final determination of the claim.
    1. ITEM 17 of the Disclosure Document is amended as follows:
    • ◼ With respect to franchises governed by Minnesota law, the Franchisor will comply with Minn. Stat. Sec. 80C.14, Subds. 3, 4 and 5 which require, except in certain specified cases, that a Franchisee be given 90 days notice of termination (with 60 days to cure) and 180 days notice of non-renewal of the Franchise Agreement.
    • ◼ Item 17 does not provide for a prospective general release of claims against Franchisor which may be subject to the Minnesota Franchise Law. Minn. Rule 2860.4400D prohibits a franchisor from requiring a franchisee to assent to a general release.
    • ◼ Minn. Stat. §80C.21 and Minn. Rule 2860.4400J prohibit us from requiring litigation to be conducted outside Minnesota. In addition, nothing in the Disclosure Document or Franchise Agreement can abrogate or reduce any of your rights as provided for in Minnesota Statutes, Chapter 80C, or your rights to any procedure, forum or remedies provided for by the laws of the jurisdiction.

Source: Item 23 — RECEIPT (FDD pages 39–129)

What This Means (2025 FDD)

According to City Publications' 2025 Franchise Disclosure Document, for franchises governed by Minnesota law, City Publications is prohibited from requiring litigation to be conducted outside of Minnesota. Specifically, Minn. Stat. §80C.21 and Minn. Rule 2860.4400J explicitly prevent City Publications from mandating that franchisees litigate outside the state.

This protection ensures that Minnesota franchisees are not forced to bear the additional costs and burdens of pursuing legal action in a distant jurisdiction. It also means that Minnesota franchisees can rely on the familiarity of local courts with Minnesota law. This provision is designed to protect the franchisee's rights and provide a fair legal environment.

Furthermore, the FDD states that nothing in the disclosure document or franchise agreement can reduce any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or their rights to any procedure, forum, or remedies provided by the laws of the jurisdiction. This reinforces the commitment to upholding the legal rights and protections afforded to franchisees under Minnesota law.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.