Can Cream require a franchisee in Minnesota to waive their right to a jury trial?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J prohibits us from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial or requiring the Area Developer or Franchisee to consent to liquidated damages, termination penalties or judgment notes. In addition, nothing in the Disclosure Document, Area Development Agreement or Franchise Agreement can abrogate or reduce any of 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.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream is prohibited from requiring a franchisee in Minnesota to waive their right to a jury trial. This protection is explicitly stated in the Minnesota-specific provisions within Item 23 of the FDD.
Specifically, Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J prevent Cream from including any clause in the franchise agreement that forces a franchisee to waive their right to a jury trial. This also extends to waiving rights to any procedure, forum, or remedies provided by Minnesota law. The rule also protects franchisees from being forced to consent to liquidated damages, termination penalties, or judgment notes.
This provision ensures that Cream franchisees in Minnesota retain all legal rights and protections afforded to them under state law, preventing Cream from imposing unfair or one-sided contractual terms. Prospective franchisees should confirm that the franchise agreement they receive aligns with these protections and consult with an attorney if they have any concerns.