In Minnesota, can Closet Storage Concepts require a franchisee to waive a jury trial?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
Item 17 of the Disclosure Document, and the appropriate sections of the Franchise Agreements are amended by the addition of the following language to the original language that appears therein, to the extent applicable:
- "Minn.
Stat.
Sec. 80C.21 and 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.
Source: Item 23 — RECEIPTS (FDD pages 59–238)
What This Means (2025 FDD)
According to Closet Storage Concepts's 2025 Franchise Disclosure Document, the franchisor is prohibited from requiring a franchisee to waive a jury trial in Minnesota. The FDD includes an addendum required by the state of Minnesota that explicitly amends Item 17 of the Disclosure Document and the franchise agreements to reflect this prohibition. This addendum ensures that the franchisee's rights under Minnesota law are protected.
Specifically, Minnesota Statutes Sec. 80C.21 and Rule 2860.4400(J) explicitly prohibit Closet Storage Concepts from including terms in their franchise agreement that require franchisees to waive their right to a jury trial. This protection is in place to ensure that franchisees have full access to legal recourse within the state and are not forced to forfeit their rights in favor of the franchisor.
This provision is beneficial for prospective Closet Storage Concepts franchisees in Minnesota, as it ensures they retain their right to a jury trial for any litigation arising from the franchise agreement. It prevents the franchisor from imposing a mandatory waiver, which could potentially disadvantage the franchisee in legal disputes. This addendum reflects Minnesota's commitment to protecting franchisee rights and ensuring a fair legal process.