Can Kidokinetics require litigation to be conducted outside of Minnesota for franchises operating in 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:
Any provision in the Franchise Agreement which would require you to assent to a release, assignment, novation or waiver that would relieve any person from liability imposed by Minnesota Statutes, Sections 80C.01 to 80C.22 will be void to the extent that such contractual provision violates such law.
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 Kidokinetics's 2024 Franchise Disclosure Document, if you are operating a franchise in Minnesota, Kidokinetics cannot require that litigation be conducted outside of Minnesota. Minnesota Statute Section 80C.21 and Minnesota Rule 2860.4400J explicitly prohibit franchisors from mandating that litigation take place outside the state. This protection ensures that Minnesota franchisees can resolve legal disputes within their own jurisdiction, under Minnesota law.
This provision is designed to protect franchisees from the potential burden and expense of having to litigate in a distant or inconvenient forum. It ensures that franchisees have access to local courts and legal resources, which can be particularly important for smaller businesses that may not have the resources to pursue legal action in another state. The FDD also states that nothing in the document or the Franchise Agreement can 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.
Furthermore, Minnesota Rule Part 2860.4400J also protects franchisees by preventing them from waiving their rights to a jury trial or any procedure, forum, or remedies provided by Minnesota law. It also prohibits franchisees from consenting to liquidated damages, termination penalties, or judgment notes. These regulations collectively aim to create a fairer balance of power between Kidokinetics and its Minnesota franchisees, ensuring that franchisees are not subjected to unduly burdensome or unfair contractual terms.