Under what circumstances does Minnesota law prohibit Face Foundrie from requiring litigation to be conducted outside of Minnesota?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS ADDENDUM (the "Addendum") is made and entered into by and between FACE FOUNDRIÉ FRANCHISING L.L.C., a Minnesota limited liability company ("Franchisor") with its principal business address at 6446 Flying Cloud Drive, Eden Prairie, Minnesota 55344, and |
|---|
| , a ("Franchisee"), whose principal |
| business address is |
| 1. |
| BACKGROUND. Franchisor and Franchisee are parties to that certain Franchise Agreement |
| dated, 20 (the "Franchise Agreement"). This Addendum is annexed to |
| and forms part of the Franchise Agreement. This Addendum is being signed because |
| (a) the Facial Bar |
| that |
| Franchisee will operate under the Franchise Agreement will be located in Minnesota; and/or (b) any of the |
| offering or sales activity relating to the Franchise Agreement occurred in Minnesota. |
| 2. |
| RELEASES. The following is added to the end of Sections 13.02 and 15.03 of the Franchise |
| Agreement: |
| Any release required as a condition of renewal, sale and/or assignment/transfer will not apply |
| to the extent prohibited by the Minnesota Franchises Law. |
| 3. |
| RENEWAL TERM AND TERMINATION TERM. The following is added to the end |
| of Sections 14.03 and 15.01 |
| of the Franchise Agreement: |
| However, with respect to franchises governed by Minnesota law, Franchisor will comply with |
| Minn. Stat. Sec. 80C.14, Subds. 3, 4 and 5 which require, except in certain specified cases, that |
| Franchisee be given 90 days' notice of termination (with 60 days to |
| cure) and 180 days' notice |
| of non-renewal of this Agreement. |
| 4. |
| NOTIFICATION OF INFRINGEMENT AND CLAIMS. The following sentence is |
| added to the end of Section 5.04 |
| of the Franchise Agreement: |
| Provided Franchisee has complied with all provisions of this Agreement applicable to the |
| Marks, Franchisor will protect Franchisee's right to use the Marks and will indemnify |
| Franchisee from any loss, cots or expenses arising out of any claims, suits or demands |
| regarding Franchisee's use of the Marks in accordance with Minn. Stat. Sec. 80C 12, Subd. |
| 1(g). |
| 5. |
| FORUM FOR LITIGATION. The following language is added to the end of Section 18.04 |
| of the Franchise Agreement: |
| NOTWITHSTANDING THE FOREGOING, MINN. STAT. SEC. 80C.21 AND MINN. |
| RULE 2860.4400J PROHIBIT US, EXCEPT IN CERTAIN SPECIFIED CASES, FROM |
| REQUIRING LITIGATION TO BE CONDUCTED OUTSIDE OF MINNESOTA. |
| NOTHING IN THIS AGREEMENT WILL ABROGATE OR REDUCE ANY OF |
| FRANCHISEE'S RIGHTS UNDER MINNESOTA STATUTES CHAPTER 80.C OR |
| FRANCHISEE'S RIGHTS TO ANY PROCEDURE, FORUM OR REMEDIES THAT |
| THE LAWS OF THE JURISDICTION PROVIDE. |
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, Minnesota law includes provisions that may restrict Face Foundrie from mandating that litigation occur outside of Minnesota. Specifically, Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J outline these restrictions, preventing Face Foundrie from requiring out-of-state litigation except in certain specified cases. This protection ensures that franchisees retain their rights under Minnesota Statutes Chapter 80.C and have access to the procedures, forums, and remedies provided by Minnesota law.
This provision is included as an addendum to the Franchise Agreement if the Facial Bar will be located in Minnesota, or if any offering or sales activity relating to the Franchise Agreement occurred in Minnesota. This addendum ensures that the franchisee's rights are protected under Minnesota law, regardless of what the standard franchise agreement might state.
For a prospective Face Foundrie franchisee, this means that if a dispute arises, they may have the right to litigate within Minnesota, benefiting from the state's legal protections. This can be a significant advantage, potentially reducing the costs and complexities associated with legal proceedings. Franchisees should consult with a legal professional to fully understand their rights and obligations under Minnesota law, as these provisions can impact how disputes are resolved and where legal actions can be pursued.