If an Mrcool franchisee executes a Development Agreement, how is Section 7.6 of that agreement amended regarding 'Choice of Law, Non-Binding Mediation, Binding Arbitration, and Consent to Jurisdiction' in relation to the Minnesota Franchise Act?

According to Mrcool's 2025 Franchise Disclosure Document, if a franchisee signs a Development Agreement, Section 7.6 of that agreement, which addresses 'Choice of Law, Non-Binding Mediation, Binding Arbitration, and Consent to Jurisdiction,' is amended to include a statement that takes into account the Minnesota Franchise Act. Specifically, the amendment states that the provisions of Section 7.6 are modified 'except to the extent otherwise prohibited by applicable law with respect to claims arising under the Minnesota Franchise Act.'

In practical terms, this means that while Section 7.6 generally governs how legal disputes are handled, the Minnesota Franchise Act takes precedence if any part of that section conflicts with Minnesota law. This ensures that Mrcool franchisees in Minnesota retain all the rights and protections afforded to them under the state's franchise laws, regardless of what the standard Development Agreement might say.

This type of amendment is common in franchise agreements to comply with state-specific franchise laws, which often provide additional protections to franchisees. Prospective Mrcool franchisees in Minnesota should carefully review both Section 7.6 of the Development Agreement and the Minnesota Franchise Act to fully understand their rights and obligations. They should also consult with an attorney to ensure they understand how these provisions interact and to assess the implications for their specific situation.