Can Cool Binz require a franchisee to waive their right to a jury trial in Minnesota?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
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. 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, Cool Binz is prohibited from requiring a franchisee to waive their right to a jury trial in Minnesota. Specifically, Minn. Rule 2860.4400J prohibits the waiver of a jury trial. This protection is explicitly included in the addendum to the franchise agreement for use in Minnesota.
This means that if a Cool Binz franchisee in Minnesota has a dispute with the franchisor that leads to litigation, the franchisee retains the right to have the case decided by a jury. This is a significant protection for franchisees, as it ensures that they have the opportunity to present their case to a panel of their peers, rather than solely to a judge.
Furthermore, the FDD states that nothing in the Franchise Disclosure Document or agreements can reduce any of the franchisee's rights as provided for in the Minnesota Franchise Act or the franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction. This reinforces the franchisee's right to a jury trial and other legal protections under Minnesota law. This clause ensures that the franchisee's rights under Minnesota law are upheld, regardless of what the standard franchise agreement might say.