Does Minnesota law allow Cream to require litigation to be conducted outside of Minnesota?

According to Cream's 2025 Franchise Disclosure Document, Minnesota law impacts the franchise agreement regarding where litigation can occur. Specifically, Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J prevent Cream from requiring that litigation be conducted outside of Minnesota if the franchise is governed by Minnesota law. This protection ensures that franchisees operating in Minnesota, or who are residents of Minnesota, can pursue legal action against Cream within the state's jurisdiction.

This provision is significant for prospective Cream franchisees in Minnesota because it protects their right to a local legal forum. Without this protection, Cream could potentially require franchisees to litigate disputes in a different, potentially less convenient or more expensive, location. This could create a disadvantage for the franchisee due to increased travel costs, unfamiliarity with the legal system, or other logistical challenges.

Furthermore, the FDD states that nothing in the disclosure document, Area Development Agreement, or Franchise Agreement can reduce any Area Developer's or Franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or Area Developer's or 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 and ensures that the franchise agreement cannot override these rights. Cream must comply with these statutes, providing an added layer of security for franchisees operating within Minnesota.