In Michigan, can Monicals Pizza require arbitration or litigation to be conducted outside of the state?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
State of Michigan Consumer Protection Division Attention: Franchise Bureau 670 Law Building Lansing, MI 48913 (517) 373-3800
FOR THE STATE OF MINNESOTA
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- ITEM 13 of the Disclosure Document is amended as follows:
- As required by the Minnesota Franchise Act, Minn. Stat. Sec. 80C.12(g), Franchisor will reimburse the Franchisee for any costs incurred by the Franchisee in the defense of the Franchisee's right to use the Marks, so long as the Franchisee was using the Marks in the manner authorized by Franchisor, and so long as Franchisor is timely notified of the claim and is given the right to manage the defense of the claim including the right to compromise, settle or otherwise resolve the claim, and to determine whether to appeal a final determination of the claim.
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- ITEM 17 of the Disclosure Document is amended as follows:
- With respect to franchises governed by Minnesota law, the Franchisor will comply with Minn. Stat. Sec. 80C.14, Subds. 3, 4 and 5, which require, except in certain specified cases, that a Franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice of non-renewal of the Agreement.
- ITEM 17 does not provide for a prospective general release of claims against Franchisor that may be subject to the Minnesota Franchise Law. Minn. Rule 2860.4400D prohibits a franchisor from requiring a franchisee to assent to a general release.
- Minn. Stat. §80C.21 and Minn. Rule 2860.4400J prohibit us from requiring litigation to be conducted outside Minnesota. In addition, nothing in the Disclosure Document 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 the jurisdiction.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
The 2025 Monicals Pizza Franchise Disclosure Document (FDD) does not explicitly address whether Monicals Pizza can require arbitration or litigation to be conducted outside the state of Michigan. The document includes addenda for several states, such as California, Minnesota, New York, and Wisconsin, which outline specific legal requirements and amendments to the franchise agreement for those states. For example, the Minnesota addendum states that Monicals Pizza is prohibited from requiring litigation to be conducted outside of Minnesota. However, there is no similar statement for Michigan.
Item 23 includes contact information for the Michigan Consumer Protection Division, Franchise Bureau, which suggests that Monicals Pizza franchisees in Michigan are subject to state regulations. However, the FDD does not specify whether these regulations prevent Monicals Pizza from mandating out-of-state arbitration or litigation.
Therefore, a prospective Monicals Pizza franchisee in Michigan should directly ask Monicals Pizza about its policies on the location of arbitration or litigation proceedings. It would also be prudent to consult with a legal professional in Michigan to understand the state's franchise laws and how they might affect the franchisee's rights in the event of a dispute with Monicals Pizza.