Does the Mrcool franchise agreement include a waiver of jury trial?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
7.10 WAIVER OF JURY TRIAL
FRANCHISOR AND FRANCHISEE IRREVOCABLY WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM, WHETHER AT LAW OR IN EQUITY, BROUGHT BY EITHER OF THEM AGAINST THE OTHER, WHETHER A LEGAL ACTION, IN MEDIATION, OR IN ARBITRATION.
7.11 BINDING EFFECT
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to the 2025 Mrcool Franchise Disclosure Document, the franchise agreement does contain a waiver of jury trial. Specifically, the agreement states that both Mrcool and the franchisee irrevocably waive trial by jury in any action, proceeding, or counterclaim, whether at law or in equity, brought by either party against the other, regardless of whether it's a legal action, in mediation, or in arbitration. This means a franchisee would be giving up their right to have a jury decide any disputes arising from the franchise agreement.
However, this waiver may not be enforceable in all states. For instance, the North Dakota Franchise Investment Law specifies that provisions requiring a franchisee to consent to a waiver of trial by jury are not enforceable. Similarly, Minnesota law prohibits Mrcool from requiring a waiver of a jury trial.
Therefore, while the Mrcool franchise agreement includes a clause waiving the right to a jury trial, its enforceability depends on the franchisee's location and the relevant state laws. Prospective franchisees should consult with an attorney to understand the implications of this waiver in their specific state and situation.