Can Cream require a waiver of a jury trial from an Area Developer or Franchisee in Minnesota?
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, if a Cream franchise or Area Development Agreement is governed by Minnesota law, Cream is prohibited from requiring an Area Developer or Franchisee to waive their right to a jury trial. This protection is explicitly stated under Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J. This means that any clause within Cream's franchise or area development agreements that attempts to force a franchisee or area developer to forfeit their right to a jury trial in Minnesota is unenforceable.
This provision ensures that Area Developers and Franchisees operating in Minnesota retain their full legal rights within the state's jurisdiction. The FDD also states that nothing in the disclosure document, Area Development Agreement, or Franchise Agreement can reduce any of an Area Developer's or Franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or an Area Developer's or Franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
For a prospective Cream franchisee or area developer in Minnesota, this is a significant protection. It means they cannot be compelled to give up their right to have a dispute decided by a jury, which is a fundamental aspect of the legal system. This protection extends to rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction. This provision is designed to protect franchisees and area developers from potentially overreaching demands by the franchisor and ensures a fair legal process within the state.