In Minnesota, can All Team unreasonably withhold consent to the transfer of a franchise?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
With respect to franchises governed by Minnesota law, the franchisor will comply with MINN.
STAT.
SECTION 80C.14 SUBD. 3-5, which require (except in certain specified cases)
(i) that a franchisee be given 90 days notice of termination (with 60 days to cure) and 180 days notice for non-renewal of the franchise agreement and
(ii) that consent to the transfer of the franchise will not be unreasonably withheld.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, for franchises governed by Minnesota law, All Team will comply with Minnesota statutes regarding franchise transfers. Specifically, All Team cannot unreasonably withhold consent to the transfer of a franchise, except in certain specified cases. This provision is in place to protect the franchisee's rights under Minnesota law.
This means that if a franchisee in Minnesota wants to sell or transfer their All Team franchise, All Team must have a reasonable basis for refusing to approve the transfer. What constitutes "unreasonable" is not defined in the FDD, but is determined by Minnesota law.
As a prospective franchisee in Minnesota, it is important to understand your rights regarding franchise transfers under Minnesota Statutes Section 80C.14 SUBD. 3-5. You should consult with a legal professional to fully understand the implications of this law and how it applies to your specific situation with All Team.