Does Minnesota law allow The Standardx to require litigation to be conducted outside of Minnesota?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J prohibits us from requiring litigation to be conducted outside Minnesota. Those provisions also provide that no condition, stipulations or provision in the Franchise Agreement shall in any way abrogate or reduce any rights you have under the Minnesota Franchises Law, including (subject to your arbitration obligation) the right to submit matters to the jurisdiction of the courts of Minnesota and the right to any procedure, forum or remedies that the laws of the jurisdiction provide.
Source: Item 18 — OTHER INCOME (LOSS), NET (FDD pages 187–399)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, Minnesota law does not allow The Standardx to require that litigation be conducted outside of Minnesota. Specifically, Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J prohibit The Standardx from requiring franchisees to litigate outside of Minnesota.
This means that if a The Standardx franchisee in Minnesota has a dispute with the franchisor that results in litigation, the franchisee has the right to have the case heard in Minnesota courts. The FDD clarifies that no condition, stipulation, or provision in the Franchise Agreement can override or reduce any rights a franchisee has under Minnesota franchise law. This includes the right to submit matters to Minnesota courts and to utilize the procedures, forums, and remedies provided by Minnesota law.
This protection ensures that Minnesota franchisees are not forced to travel to another state to resolve legal disputes with The Standardx, which could create a significant financial and logistical burden. The provision aims to protect the franchisee's rights and ensure fair legal proceedings within their own jurisdiction. Prospective franchisees should be aware of this protection as it can be a significant advantage in the event of a legal dispute with the franchisor.