Can Stretch Zone require a franchisee to waive a jury trial in Minnesota?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
To the extent that the Franchise Agreement contains provisions that are inconsistent with the following, the provisions are amended:
- (a) Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J) prohibit the Franchisor from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring the franchisee to consent to liquidated damages, termination penalties or judgment notes.
In addition, nothing in the Franchise Disclosure Document or agreement(s) can abrogate or reduce (1) any of the Franchisee's rights as provided for in Minnesota Statutes, Chapter 80C or (2) the Franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
Source: Item 8 — Receipts. Any sale made must be in compliance with § 683(8) of the Franchise Sale Act (N.Y. Gen. Bus. L. § 680 et seq.), which describes the time period a Franchise Disclosure Document (offering prospectus) must be provided to a prospective franchisee before a sale may be made. New York law requires a franchisor to provide the Franchise Disclosure Document at the earliest of the first personal meeting or ten (10) business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship. (FDD pages 99–263)
What This Means (2025 FDD)
According to the 2025 Stretch Zone FDD, if a franchisee is operating in Minnesota, Stretch Zone is prohibited from requiring the franchisee to waive their right to a jury trial. This protection is explicitly stated in the Minnesota Addendum to the Franchise Agreement. The addendum amends the franchise agreement to ensure compliance with the Minnesota Franchise Act, specifically referencing Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J).
This means that any clause within the standard Stretch Zone franchise agreement that might suggest or mandate a waiver of jury trial is superseded by the Minnesota Addendum for franchisees operating within that state. This ensures that Minnesota franchisees retain all rights to a jury trial, regardless of what the standard agreement might otherwise stipulate.
This provision is significant for prospective Stretch Zone franchisees in Minnesota as it protects their legal rights and ensures they have access to the full scope of legal remedies available under Minnesota law. It also reflects Minnesota's commitment to protecting franchisees' rights, ensuring a fair legal process in case of disputes. Franchisees should carefully review the Minnesota Addendum to fully understand their rights and how the standard franchise agreement is modified within the state.