Does Kitchen Solvers have an obligation to advance a franchisee's share of the costs of arbitration?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
checks are governed by Minn. Stat. 604.113, which puts a cap on $30 on service charges.
Item 17
With respect to franchises governed by Minnesota law, Franchisor will comply with Minnesota Statute § 80C.14, subdivisions 3, 4, and 5 which requires, except in certain specified cases, that you be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for nonrenewal of the Franchise Agreement.
Minnesota Statutes, Section 80C.21 and Minnesota Rule 2860.4400J prohibit the franchisor from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial or requiring the franchisee to consent to liquidated damages, termination penalties or judgment notes.
Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
Based on the 2025 Kitchen Solvers Franchise Disclosure Document addendums for Illinois, Minnesota, and North Dakota, the franchisor's obligations regarding legal matters such as arbitration vary by state. In Minnesota, the franchisor cannot require litigation to be conducted outside of Minnesota, nor can they enforce a waiver of a jury trial or require consent to liquidated damages, termination penalties, or judgment notes. Similarly, in North Dakota, any provision requiring franchisees to consent to the jurisdiction of courts outside North Dakota or to consent to the application of laws of a state other than North Dakota is void, although the Franchise Agreement may provide for arbitration in a forum outside of North Dakota.
For Illinois franchisees, the FDD states that any provision in a franchise agreement that designates jurisdiction or venue outside the State of Illinois is void. However, a franchise agreement may provide for arbitration outside of Illinois.
The FDD does not specify whether Kitchen Solvers is obligated to advance a franchisee's share of arbitration costs. A prospective franchisee should seek clarification from Kitchen Solvers regarding the allocation of arbitration costs and whether the franchisor advances these costs, as this can significantly impact the financial burden of resolving disputes.