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How is Article 18.K. of the Mrcool Franchise Agreement, concerning 'Waiver of Jury Trial,' supplemented regarding rights conferred by the Minnesota Franchise Act?

Mrcool Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. Article 18.K. of the Franchise Agreement, and if Franchisee executes a Development Agreement, Section 7.10 of the Development Agreement, under the heading "Waiver of Jury Trial", shall be supplemented by the addition of the following statement at the end of the sentence contained in Article 18.K. of the Franchise Agreement and Section 7.10 of the Development Agreement:
    • ; except that nothing in this Agreement should be considered a waiver of any right conferred upon Franchisee by the Minnesota Franchise Act.

Source: Item 23 — RECEIPTS (FDD pages 55–263)

What This Means (2025 FDD)

According to Mrcool's 2025 Franchise Disclosure Document, Article 18.K. of the Franchise Agreement, which addresses the 'Waiver of Jury Trial,' is supplemented to protect the rights granted to franchisees under the Minnesota Franchise Act. Specifically, the amendment ensures that nothing in the agreement should be interpreted as a waiver of any right conferred upon the franchisee by the Minnesota Franchise Act. This means that while the standard franchise agreement might contain a clause where the franchisee waives their right to a jury trial, this waiver does not apply to rights protected by Minnesota's franchise laws. This amendment is also applicable to Section 7.10 of the Development Agreement if the franchisee executes one.

For a prospective Mrcool franchisee in Minnesota, this is a significant protection. It means that if a dispute arises that involves rights specifically granted by the Minnesota Franchise Act, the franchisee retains the right to a jury trial, regardless of any general waiver in the franchise agreement. This could be crucial in cases involving termination, non-renewal, or other issues covered by the Act. The franchisee's ability to seek remedies under Minnesota law is preserved, and they cannot be forced to give up their legal rights simply by signing the franchise agreement.

This type of amendment is common in franchise agreements to ensure compliance with state-specific franchise laws, which often have provisions designed to protect franchisees. By explicitly stating that the waiver of jury trial does not extend to rights under the Minnesota Franchise Act, Mrcool aims to avoid potential conflicts with state law and provide clarity to franchisees about their legal rights. This also reflects a commitment to operate within the legal framework established by Minnesota for franchise relationships.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.