Does the jury trial waiver for Cool Binz apply to actions at equity?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
nt is found or determined to be unconscionable or unenforceable for any reason, the foregoing provisions shall continue in full force and effect, including, without limitation, the waiver of any right to claim any consequential damages.
THE PARTIES HEREBY AGREE TO WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM, WHETHER AT LAW OR EQUITY, REGARDLESS OF WHICH PARTY BRINGS SUIT. THIS WAIVER WILL APPLY TO ANY MATTER WHATSOEVER BETWEEN THE PARTIES HERETO WHICH ARISES OUT OF OR IS RELATED IN ANY WAY TO THIS AGREEMENT, THE PERFORMANCE OF EITHER PARTY, AND/OR YOUR PURCHASE FROM US OF THE FRANCHISE AND/OR ANY GOODS OR SERVICES. THE PARTIES AGREE THAT ALL PROCEEDINGS ARISING OUT OF OR RELATED TO THIS AGREEMENT, OR THE SALE OF THE COOL BINZ BUSINESS, WILL BE CONDUCTED ON AN INDIVIDUAL, NOT A CLASS-WIDE BASIS, AND THAT ANY PROCEEDING BETWEEN YOU, YOUR OWNERS AND US OR OUR AFFILIATES/OFFICERS/EMPLOYEES MAY NOT BE CONSOLIDATED WITH ANY OTHER PROCEEDING BETWEEN US AND ANY OTHER THIRD PARTY.
**J.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the jury trial waiver applies to actions at both law and equity. This means that a franchisee waives their right to a jury trial for any legal action related to the franchise agreement, regardless of whether the action is based on legal principles (law) or fairness principles (equity). This waiver extends to any matter arising from the franchise agreement, the performance of either party, or the franchisee's purchase of the franchise, goods, or services from Cool Binz.
This waiver has significant implications for prospective Cool Binz franchisees. By agreeing to the franchise agreement, they give up their right to have a jury decide any disputes that may arise. Instead, disputes will be resolved by a judge. Jury trials can be more expensive and time-consuming than bench trials (trials before a judge only), but they also offer the potential for a more sympathetic hearing, especially if the franchisee feels they have been treated unfairly by Cool Binz.
However, the FDD also notes that Minnesota law prohibits the waiver of a jury trial. This suggests that the enforceability of the jury trial waiver may depend on the jurisdiction in which a dispute arises and that the Minnesota law would take precedence for franchises operating in Minnesota. Prospective franchisees should consult with an attorney to understand the implications of this waiver and how it may be affected by state laws.
It is important for prospective franchisees to carefully consider the implications of waiving their right to a jury trial. They should weigh the potential benefits of a jury trial against the potential cost and time savings of a bench trial. They should also be aware of the laws in their state that may affect the enforceability of the jury trial waiver.