Does the Kidokinetics Franchise Agreement for Minnesota franchises require litigation to be conducted outside of Minnesota?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Despite anything to the contrary in the Franchise Agreement, the following provisions will supersede and apply to all Franchises offered and sold in the State of Minnesota:
Minnesota Statute Section 80C.21 and Minnesota Rule 2860.4400J prohibit the franchisor from requiring litigation to be conducted outside of Minnesota.
In addition, nothing in the FDD or Franchise Agreement can abrogate or reduce any of your rights as provided for in Minnesota Statutes, Chapter 80C, or your rights to any procedure, forum, or remedies provided for by the laws of Minnesota.
Minn. Rule Part 2860.4400J prohibits a franchisee from waiving his rights to a jury trial or waiving his rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction, or consenting to liquidated damages, termination penalties or judgment notes.
Source: Item 23 — RECEIPT (FDD pages 59–205)
What This Means (2024 FDD)
According to the 2024 Kidokinetics Franchise Disclosure Document, Minnesota Statute Section 80C.21 and Minnesota Rule 2860.4400J prohibit Kidokinetics from requiring litigation to be conducted outside of Minnesota for franchises offered and sold in the State of Minnesota. This means that any clause in the standard Franchise Agreement that mandates out-of-state litigation is superseded by Minnesota law for Minnesota franchisees.
This protection ensures that Minnesota Kidokinetics franchisees can resolve legal disputes within their own state, avoiding the increased costs and logistical challenges of litigating elsewhere. This is a significant benefit, as it levels the playing field and prevents the franchisor from potentially gaining an advantage by choosing a distant or inconvenient forum.
Furthermore, the FDD states that nothing in the document or the Franchise Agreement can reduce any rights provided to the franchisee under Minnesota Statutes, Chapter 80C, or their rights to any procedure, forum, or remedies provided by Minnesota law. This reinforces the commitment to upholding franchisee rights within the state.
In addition, Minnesota Rule Part 2860.4400J prohibits a franchisee from waiving their rights to a jury trial or waiving their rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction, or consenting to liquidated damages, termination penalties or judgment notes.