Does Minnesota Rule 2860.4400J prohibit Cool Binz from requiring a waiver of a jury trial?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
, that (i) 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, and that (ii) consent to the transfer of the franchise will not be unreasonable withheld. The franchisor will comply with Minnesota law in this respect in its performance of the franchise agreement and any ancillary agreements.
Waiver of Punitive Damages and Jury Trial. The following is added to Section 15.I, of the Agreement:
Minn. Rule 2860.4400J. prohibits the waiver of a jury trial.
Limitations of Claims. The following is added to Section 15.K. of the Agreement:
Minn. Stat. 80C.17, Subd. 5 requires that no action may be commenced pursuant to this section more than three (3) years after the cause of action occurs.
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.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, Minnesota Rule 2860.4400J does indeed prohibit Cool Binz from requiring a waiver of a jury trial in its franchise agreements. This protection is explicitly mentioned in Item 23, which addresses receipts and modifications to the standard franchise agreement for franchisees operating in Minnesota. This rule ensures that franchisees in Minnesota retain their right to a jury trial, preventing Cool Binz from enforcing a clause that would force them to waive this right.
This prohibition is further reinforced by additional stipulations within the FDD. Specifically, the document states that Cool Binz is prohibited from requiring litigation to be conducted outside of Minnesota and from requiring the franchisee to consent to liquidated damages, termination penalties, or judgment notes. These provisions collectively safeguard the franchisee's rights to a fair legal process within their home state.
For a prospective Cool Binz franchisee in Minnesota, this means that they cannot be compelled to waive their right to a jury trial, nor can they be forced to litigate disputes outside of Minnesota. This provides a level of legal protection and ensures that disputes can be resolved within a familiar legal framework. It also prevents Cool Binz from imposing potentially unfair financial penalties or judgments without due process.