In Minnesota, is Embassy Suites allowed to require litigation to be conducted outside of Minnesota?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- The following language will appear at the end of Subsection 16.2.2 of the Franchise Agreement:
"Minnesota Statutes, Sections 80C.21 and Minnesota Rule 2860.4400J prohibit Franchisor from requiring litigation to be conducted outside Minnesota. In addition, nothing in the Franchise Disclosure Document or Franchise Agreement can abrogate or reduce any of Franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or Franchisee's rights to any procedure, forum or remedies provided for by the laws of the jurisdiction."
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, Minnesota law protects franchisees from being forced to litigate outside of the state. Specifically, Minnesota Statutes, Sections 80C.21 and Minnesota Rule 2860.4400J, explicitly prohibit Embassy Suites from requiring franchisees to conduct litigation outside of Minnesota. This protection ensures that Minnesota franchisees can resolve disputes with Embassy Suites within their own state's legal system.
This provision is included in the Minnesota Addendum to the Franchise Agreement to ensure compliance with Minnesota law. The language in the addendum reinforces that nothing in the Franchise Disclosure Document or Franchise Agreement can reduce a franchisee's rights under Minnesota Statutes, Chapter 80C, including their rights to procedures, forums, or remedies provided by Minnesota law.
For a prospective Embassy Suites franchisee in Minnesota, this means they have the right to pursue legal action against the franchisor within Minnesota's jurisdiction. This can save on travel costs, and ensure that disputes are handled in a legal environment familiar to the franchisee. It also prevents Embassy Suites from imposing a forum that may be more favorable to them, providing a more level playing field for legal proceedings.