Do Learningrx franchisees waive their right to a jury trial?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
Item 17 of the franchise disclosure document, Section 16.2 of the Franchise Agreement and Section 10 of the Area Developer requiring you to consent to a waiver of trial by jury is considered unenforceable in the State of North Dakota under Section 51-19-09 of the North Dakota Franchise Investment Law, and are deleted in their entirety.
In accordance with Minnesota Rule 2860.4400J, to the extent required by law, the franchise disclosure document, Franchise Agreement and Area Developer Agreement are modified so that we cannot require you to waive your rights to a jury trial or to waive rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction, or to consent to liquidated damages, termination penalties, or judgment notes; provided that this part shall not bar an exclusive arbitration clause.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the enforceability of a jury trial waiver depends on the franchisee's location. Specifically, the standard franchise agreement includes a clause that requires franchisees to waive their right to a jury trial. However, this clause is unenforceable in North Dakota due to Section 51-19-09 of the North Dakota Franchise Investment Law.
In Minnesota, the franchise disclosure document, Franchise Agreement and Area Developer Agreement are modified so that Learningrx cannot require franchisees to waive their rights to a jury trial.
Prospective franchisees should be aware of these state-specific variations and consult with legal counsel to understand their rights fully. It is common practice for franchise agreements to include clauses requiring alternative dispute resolution methods like arbitration or mediation, but the enforceability of jury trial waivers can vary significantly by jurisdiction.