In Minnesota, is Management Recruiters prohibited from requiring litigation to be conducted outside of Minnesota?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
Minnesota Statutes, Section 80C.21 and Minnesota Rule 2860.4400(J) prohibit the franchisor from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring the member to consent to liquidated damages, termination penalties or judgment notes. In addition, nothing in the Disclosure Document or agreement can abrogate or reduce any of the member's rights as provided for in Minnesota Statutes, Chapter 80C, or member's right to any procedure, forum, or remedies provided for by the laws of the jurisdiction. The member cannot consent to the franchisor obtaining injunctive relief. The franchisor may seek injunctive relief. It will be determined by a court if a bond is required.
Source: Item 23 — RECEIPTS (FDD pages 67–327)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, Minnesota Statutes, Section 80C.21 and Minnesota Rule 2860.4400(J) explicitly prohibit Management Recruiters from requiring that litigation be conducted outside of Minnesota. This provision ensures that Management Recruiters franchisees operating in Minnesota have the right to pursue legal action within the state's jurisdiction.
This protection extends further, preventing Management Recruiters from requiring franchisees to waive their right to a jury trial or consent to liquidated damages, termination penalties, or judgment notes. Additionally, the FDD states that no part of the disclosure document or franchise agreement can diminish any rights provided to the franchisee under Minnesota Statutes, Chapter 80C, or their entitlement to procedures, forums, or remedies available under Minnesota law.
Furthermore, Minnesota franchisees cannot consent to Management Recruiters obtaining injunctive relief, although Management Recruiters retains the right to seek such relief. The necessity of a bond for injunctive relief will be determined by the court. This addendum is effective only to the extent that the jurisdictional requirements of the Minnesota Franchise Law or the Rules and Regulations promulgated by the Minnesota Commission of Commerce are independently met.