Does the Minnesota Franchise Act apply to Crisp & Green Restaurants located outside of Minnesota?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in Franchise | Summary | |
|---|---|---|---|
| or Other Agreement | |||
| u. Dispute resolution by arbitration or mediation | Section 18.05 – Franchise Agreement and Section 9 – Area Development Agreement | Except for claims for injunctive relief, we make seek against you, all disputes must be arbitrated in the city closest to our corporate headquarters (currently Wayzata, MN). Subject to applicable state law. | |
| v. Choice of forum | Section 18.07 – Franchise Agreement and Section 9 – Area Development Agreement | Subject to applicable state law, disputes must be arbitrated or litigated in the city closest to our corporate headquarters (currently Wayzata, MN). | |
| w. Choice of law | Section 18.08 – Franchise Agreement and Section 9 – Area Development Agreement | Subject to applicable state law, Minnesota law applies, provided that the Minnesota Franchise Act and other franchise-specific laws and regulations of the State of Minnesota generally do not apply to Restaurants located outside of Minnesota. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 52–57)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, the Minnesota Franchise Act generally does not apply to restaurants located outside of Minnesota. However, the franchise agreement specifies that Minnesota law will govern the agreement, subject to applicable state law. This means that while the franchise agreement is interpreted under Minnesota law, any franchise-specific laws and regulations of Minnesota will generally not extend to Crisp & Green restaurants operating in other states.
This is a significant consideration for prospective franchisees as it means the legal protections and requirements provided by the Minnesota Franchise Act, such as specific disclosure requirements or regulations around termination, may not be applicable if the restaurant is located outside of Minnesota. Franchisees should be aware that their rights and obligations will primarily be governed by the franchise agreement itself and the laws of the state in which they operate.
It is important for potential Crisp & Green franchisees to consult with a legal professional to understand the implications of this choice of law provision and how it affects their rights and responsibilities, especially if they are considering opening a franchise outside of Minnesota. They should also inquire about which state laws will apply to their franchise and how those laws may differ from the protections offered by the Minnesota Franchise Act.