Can Desi District require a franchisee to waive a jury trial in Minnesota?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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 52–140)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, if a franchisee is operating in Minnesota, Desi District cannot require them to waive their right to a jury trial. The Minnesota Addendum to the disclosure document explicitly states that Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J) prohibit Desi District from requiring a waiver of a jury trial. This protection ensures that franchisees in Minnesota retain their right to have disputes decided by a jury if they so choose.
This provision is reinforced by the Minnesota Rider to the Franchise and Multi-Unit Development Agreement, which amends the agreement to comply with Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J). This reiteration emphasizes Desi District's commitment to adhering to Minnesota law and protecting the rights of its franchisees within the state.
For a prospective Desi District franchisee in Minnesota, this means that any clause in the franchise agreement that might suggest a waiver of the right to a jury trial is unenforceable in Minnesota. This ensures that the franchisee maintains all legal rights and remedies available under Minnesota law, providing an additional layer of protection.