What Minnesota rule prohibits Face Foundrie from requiring litigation to be conducted outside of Minnesota in certain cases?

According to Face Foundrie's 2025 Franchise Disclosure Document, Minnesota Statute Section 80C.21 and Minnesota Rule 2860.4400J generally prevent Face Foundrie from requiring franchisees to conduct litigation outside of Minnesota. This protection is specifically included as an addendum to the Area Development Agreement if any part of the franchise offering or sales activity occurred in Minnesota, if the franchised locations will be in Minnesota, or if the franchisee is domiciled in Minnesota. This addendum ensures that the Area Developer retains all rights under Minnesota Statutes Chapter 80.C and maintains access to all procedures, forums, and remedies provided by Minnesota law.

This provision is beneficial for prospective Face Foundrie franchisees in Minnesota because it ensures that they will not be forced to litigate disputes with the franchisor in a potentially distant or inconvenient jurisdiction. It allows them to resolve legal issues within their home state, where they are likely more familiar with the legal system and can more easily access legal representation. This can significantly reduce the costs and complexities associated with resolving disputes.

However, it is important to note that this protection is not absolute. The FDD states that there are "certain specified cases" where Face Foundrie may be able to require litigation outside of Minnesota, although these cases are not defined in the provided excerpt. A potential franchisee should seek clarification from Face Foundrie regarding what these specific cases are to fully understand the scope of this protection. Understanding these exceptions is crucial for assessing the potential risks and legal obligations associated with investing in a Face Foundrie franchise.