Is Cool Binz allowed to require litigation to be conducted outside of Minnesota?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
Dispute Resolution Procedures/Governing Law. The following language is added to Sections 15.F and 15.H. of the Agreement:
PURSUANT TO MINN. STAT. 80C.21 AND MINN. RULE 2860.4400J,the Franchisor is prohibited from (i) requiring litigation to be conducted outside Minnesota; (ii) requiring waiver of a jury trial; and (iii) requiring the franchisee to consent to liquidated damages, termination penalties or judgment notes. Nothing in the Franchise Disclosure Document or agreement(s) can abrogate or reduce (i) any of the franchisee's rights as provided for in Minnesota Franchise Act or (ii) franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, if a Cool Binz franchise is governed by Minnesota law, Cool Binz is prohibited from requiring litigation to be conducted outside of Minnesota. This protection is explicitly stated to align with Minn. Stat. 80C.21 and Minn. Rule 2860.4400J. This means that if a dispute arises and leads to litigation, a Cool Binz franchisee operating under Minnesota law has the right to have the legal proceedings take place within the state.
This provision is significant for prospective franchisees in Minnesota as it ensures that they will not be forced to litigate in a potentially distant or inconvenient jurisdiction. It also prevents Cool Binz from imposing unfavorable legal terms that might disadvantage franchisees. This protection extends to other rights as well, ensuring that the franchise agreement cannot reduce any of the franchisee's rights as provided by the Minnesota Franchise Act or their rights to any procedure, forum, or remedies provided by the laws of the jurisdiction.
Furthermore, the FDD emphasizes that nothing in the Franchise Disclosure Document or agreements can diminish the franchisee's rights under Minnesota law. This reinforces the commitment to upholding the legal protections afforded to franchisees within the state. This clause provides an additional layer of security for franchisees, ensuring that their legal rights and remedies are preserved throughout the duration of the franchise agreement with Cool Binz.