Are there any exceptions to the jurisdiction requirements for legal actions arising from the Cream franchise agreement?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
MARYLAND
-
- Under COMAR 02.02.08.16L, any release required as a condition of renewal, sale and/or assignment/transfer will not apply to claims or liability arising under the Maryland Franchise Registration and Disclosure Law.
-
- The Franchise Agreement and Area Development Agreement provide for termination upon bankruptcy. This provision might not be enforceable under federal bankruptcy law (11 U.S.C. Sections 101 et seq.), but we will enforce it to the extent enforceable.
-
- A franchisee may bring suit in Maryland for claims arising under the Maryland Franchise Registration Disclosure Law. Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise.
MINNESOTA
- The following is added at the end of the chart in Item 17:
With respect to franchises governed by Minnesota law, we will comply with Minn. Stat. Sec. 80C.14, Subds. 3, 4 and 5 which require, except in certain specified cases, that you be given 90 days' notice of termination (with 60 days to cure) of the Franchise Agreement and Area Development Agreement and 180 days' notice for non-renewal of the Franchise Agreement and Area Development Agreement.
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.
Any release required as a condition of renewal or transfer/assignment will not apply to the extent prohibited by Governing Law with respect to claims arising under Minn. Rule 2860.4400D.
In compliance with Minnesota Statute 80C.17 Subd. 5, no action may be commenced pursuant to this section more than three years after the cause of action accrues
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, there are exceptions to the jurisdiction requirements for legal actions, particularly for franchisees operating in Minnesota and Maryland. Generally, the Cream franchise agreement is governed by Ohio law and requires that all actions be commenced in the court nearest to Cream's principal place of business in Columbus, Ohio. Franchisees typically waive any objections to the jurisdiction or venue of that court. However, these general rules are subject to specific exceptions.
For Minnesota franchisees, the FDD states that Minnesota law prohibits Cream from requiring litigation to be conducted outside of Minnesota. Additionally, Cream cannot require a franchisee to waive their right to a jury trial or to consent to liquidated damages, termination penalties, or judgment notes. The disclosure document, franchise agreement, or area development agreement cannot reduce any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or their rights to any procedure, forum, or remedies provided by Minnesota law. Moreover, any release required as a condition of renewal or transfer/assignment will not apply to the extent prohibited by Governing Law with respect to claims arising under Minn. Rule 2860.4400D. In compliance with Minnesota Statute 80C.17 Subd. 5, no action may be commenced pursuant to this section more than three years after the cause of action accrues.
For Maryland franchisees, the FDD specifies that a franchisee may bring suit in Maryland for claims arising under the Maryland Franchise Registration Disclosure Law. Any such claims must be brought within 3 years after the grant of the franchise. Additionally, any representations requiring prospective franchisees to assent to a release, estoppel, or waiver of liability are not intended to act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. These state-specific provisions ensure that franchisees' rights under local laws are protected, overriding the standard Ohio jurisdiction clause in certain circumstances.