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In Minnesota, can Craters & Freighters require litigation to be conducted outside of Minnesota?

Craters_Freighters Franchise · 2025 FDD

Answer from 2025 FDD Document

ITEM 17.

    1. 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 franchisor, 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 save on travel costs and ensure familiarity with local laws and procedures.

In addition to the prohibition on out-of-state litigation, Minnesota law also prevents Craters & Freighters from requiring franchisees to waive a jury trial or consent to liquidated damages, termination penalties, or judgment notes. Furthermore, the Franchise Disclosure Document or any agreements cannot reduce any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or the franchisee's rights to any procedure, forum, or remedies provided by Minnesota law. These stipulations collectively provide significant legal protections for Craters & Freighters franchisees operating in Minnesota.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.