factual

Does Minnesota law prohibit Deka Lash from requiring franchisees to litigate outside of Minnesota?

Deka_Lash Franchise · 2024 FDD

Answer from 2024 FDD Document

MINNESOTA ADDENDUM TO THE FRANCHISE AGREEMENT

If any of the terms of the Franchise Agreement are inconsistent with the terms below, the terms below control

  • Minn. Stat. §80C.21 and Minn. Rule 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 agreements 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 — RECEIPT (FDD pages 63–234)

What This Means (2024 FDD)

According to Deka Lash's 2024 Franchise Disclosure Document, Minnesota law does indeed protect franchisees in this regard. Specifically, Minn. Stat. §80C.21 and Minn. Rule 2860.4400(J) explicitly prohibit Deka Lash from requiring that litigation be conducted outside of Minnesota. This provision ensures that Minnesota Deka Lash franchisees are not forced to bear the additional burden and expense of litigating disputes in a foreign jurisdiction.

This protection extends beyond just the location of litigation. The same Minnesota statutes and rules also prevent Deka Lash from requiring franchisees to waive their right to a jury trial or to consent to liquidated damages, termination penalties, or judgment notes. Furthermore, the FDD states that nothing in the Franchise Disclosure Document or related agreements can diminish any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or their rights to any procedure, forum, or remedies available under Minnesota law.

For a prospective Deka Lash franchisee in Minnesota, this addendum provides significant legal safeguards. It ensures that their legal rights under Minnesota law are fully protected and cannot be overridden by the standard terms of the franchise agreement. This can provide peace of mind and potentially save significant costs and inconvenience in the event of a dispute with Deka Lash. Franchisees should carefully review the Minnesota Addendum to fully understand their rights and protections under Minnesota law.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.