In Minnesota, can the Embassy Suites Franchise Agreement or Disclosure Document reduce any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C?
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 the 2025 Embassy Suites Franchise Disclosure Document, the Franchise Agreement and Disclosure Document cannot reduce a franchisee's rights as provided for in Minnesota Statutes, Chapter 80C. Specifically, the language at the end of Subsection 16.2.2 of the Franchise Agreement states that 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. This provides assurance to prospective franchisees in Minnesota that their rights under Minnesota franchise law are protected.
Furthermore, Minnesota Statutes, Sections 80C.21 and Minnesota Rule 2860.4400J, explicitly prohibit Embassy Suites from requiring litigation to be conducted outside Minnesota. This ensures that Minnesota franchisees have the right to resolve disputes within their own state, which can reduce legal costs and increase convenience. Additionally, these statutes prevent Embassy Suites from requiring a franchisee to consent to liquidated damages, termination penalties, or judgment notes, offering further protection against potentially unfair financial burdens.
To reinforce these protections, the Minnesota Addendum to the Franchise Agreement amends certain sections to align with Minnesota law. For instance, Section 3 and Section 13 are amended to acknowledge that Minnesota law provides franchisees with specific termination and non-renewal rights, including mandated notice periods. Also, Minnesota Rule 2860.4400D prohibits Embassy Suites from requiring a Franchisee to assent to a release, assignment, novation, or waiver that would relieve any person from liability imposed by Minnesota franchise law.