In Minnesota, can Cool Binz 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 the 2025 Cool Binz Franchise Disclosure Document, Cool Binz is prohibited from requiring franchisees in Minnesota to conduct litigation outside of Minnesota. This protection is explicitly stated to align with Minnesota Statutes 80C.21 and Minnesota Rule 2860.4400J. This ensures that Minnesota franchisees have the right to pursue legal action within their own state, avoiding the potential burden and expense of out-of-state litigation.
This provision is particularly important for prospective Cool Binz franchisees in Minnesota as it safeguards their legal rights and provides a local forum for dispute resolution. Without this protection, Cool Binz could potentially force franchisees to litigate in a distant or inconvenient location, which could significantly disadvantage the franchisee. The FDD also states that nothing in the document or agreements can reduce any of the franchisee's rights as provided for in the Minnesota Franchise Act.
Furthermore, the FDD highlights other protections for Minnesota franchisees, including the prohibition of waiving a jury trial and the franchisor's compliance with specific notice requirements for termination or non-renewal of the franchise agreement, as mandated by Minnesota law. These stipulations collectively reinforce the legal rights and protections afforded to Cool Binz franchisees operating within the state of Minnesota.