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In Minnesota, does Crave Cookies have the right to require litigation to be conducted outside of Minnesota?

Q: In Minnesota, does Crave Cookies have the right to require litigation to be conducted outside of Minnesota?

- Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J) prohibit the franchisor 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 (1) any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C or (2) franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction. Source: Item 23 — RECEIPTS (FDD pages 47–194)

Crave_Cookies Franchise · 2025 FDD

Answer from 2025 FDD Document

Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J) prohibit the franchisor 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 (1) any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C or (2) franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.

Source: Item 23 — RECEIPTS (FDD pages 47–194)

What This Means (2025 FDD)

According to Crave Cookies' 2025 Franchise Disclosure Document, if you are opening a franchise in Minnesota, Crave Cookies is prohibited from requiring that litigation be conducted outside of Minnesota. The Minnesota Addendum to the disclosure document explicitly states that Minnesota Statutes and Rules prevent Crave Cookies from enforcing such a requirement. This protects Minnesota franchisees from having to travel to other states, such as Utah where Crave Cookies is based, to resolve legal disputes.

This protection extends to other legal aspects as well. The addendum also states that Crave Cookies cannot require a franchisee to waive a jury trial or consent to liquidated damages, termination penalties, or judgment notes. Furthermore, the franchise agreement cannot reduce any of the franchisee's rights as provided by Minnesota Statutes, Chapter 80C, or their rights to any procedure, forum, or remedies provided by Minnesota law.

These stipulations provide significant legal protection for franchisees operating in Minnesota, ensuring that they are not subjected to potentially burdensome or unfair legal conditions. Prospective franchisees in Minnesota can be assured that their legal rights and access to local legal recourse are safeguarded under the franchise agreement.

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.

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