In Minnesota, is Craters & Freighters allowed to require litigation to be conducted outside of the state?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
ITEM 17.
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- Minn. Stat. § 80C.21 and Minn. Rule 2860.4400J prohibit us from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring the franchisee to consent to liquidated damages, termination penalties or judgment notes. In addition, nothing in the Franchise Disclosure Document or agreement(s) can abrogate or reduce any of franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, Minnesota statutes and regulations apply to franchises and franchisees in Minnesota. Specifically, Craters & Freighters is prohibited from requiring franchisees to conduct litigation outside of Minnesota. This protection is explicitly stated in Minn. Stat. § 80C.21 and Minn. Rule 2860.4400J.
This means that if a Craters & Freighters franchisee in Minnesota has a legal dispute with the company, the franchisee cannot be forced to litigate the matter in another state. This provision ensures that Minnesota franchisees have the right to resolve legal issues within their own jurisdiction, which can reduce costs and logistical burdens associated with out-of-state litigation.
Additionally, the FDD states that nothing in the Franchise Disclosure Document or agreements can reduce any of a franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or a franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction. This reinforces the protection of franchisees' rights under Minnesota law.