Does Minnesota law allow Pearce Bespoke to require a waiver of a jury trial from franchisees?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
development fee, and any other initial payment until all of our material pre-opening obligations have been satisfied and our business is open and operating. However, you must execute the Franchise Agreement prior to looking for a site or beginning training.
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- Item 6, Non-Sufficient Funds Fee, is amended to state:
Pursuant to Minn. Stat. § 604.113, the Non-Sufficient Funds Fee is $30.00 per occurrence.
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- Item 17 is amended to state:
- (a) Minn. Stat. § 80C.21 and Minnesota Rules § 2860.4400(J) prohibit us from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring you to consent to liquidate
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, Minnesota law does not allow Pearce Bespoke to require franchisees to waive their right to a jury trial. Specifically, Minn. Stat. § 80C.21 and Minnesota Rules § 2860.4400(J) explicitly prohibit Pearce Bespoke from requiring litigation to be conducted outside Minnesota or requiring a waiver of a jury trial. This protection is in place to ensure that franchisees retain their legal rights within the state.
This provision means that any clause in the franchise agreement that attempts to force a franchisee to waive their right to a jury trial in Minnesota is unenforceable. The FDD emphasizes that nothing in the disclosure document or agreements should reduce any rights provided under Minn. Stat. Chapter 80C or rights to procedures, forums, or remedies provided by Minnesota law. This ensures that franchisees operating in Minnesota have the full protection of the state's legal system.
For a prospective Pearce Bespoke franchisee in Minnesota, this is a significant benefit. It means that if a dispute arises with Pearce Bespoke that leads to litigation, the franchisee has the right to have the case decided by a jury within the state of Minnesota. This can be particularly important, as local juries may be more familiar with the specific business environment and challenges faced by franchisees in the region.