In Minnesota, can Crown Gold Exchange require a franchisee to waive a jury trial?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
MINNESOTA ADDENDUM TO DISCLOSURE DOCUMENT
No statement, questionnaire, or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including, fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed with the franchise.
In the State of Minnesota only, this Disclosure Document is amended as follows:
• Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J) prohibit the franchisor from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring the franchisee to consent to liquidated damages, termination penalties or judgment notes. In addition, nothing in the Franchise Disclosure Document or agreement(s) can abrogate or reduce (1) any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C or (2) franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
Source: Item 23 — RECEIPTS (FDD pages 39–114)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, Minnesota law specifically prohibits Crown Gold Exchange from requiring franchisees to waive their right to a jury trial. This protection is outlined in the Minnesota Addendum to the Disclosure Document.
This means that any clause within the standard Crown Gold Exchange franchise agreement that might suggest a franchisee must waive their right to a jury trial is superseded by Minnesota state law. Franchisees in Minnesota retain their right to a jury trial, regardless of what the standard franchise agreement may state. This ensures that franchisees have full access to legal recourse within the state's judicial system.
Furthermore, the Minnesota Addendum clarifies that no agreement signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Crown Gold Exchange or its representatives. The FDD also states that Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J) prohibit Crown Gold Exchange from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring the franchisee to consent to liquidated damages, termination penalties or judgment notes. These stipulations reinforce the protection of franchisee rights within the state.