Under Minnesota law, 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 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, Minnesota law stipulates that consent to the transfer of a franchise cannot be unreasonably withheld by the franchisor. This protection is explicitly provided under MINN. STAT. SECTION 80C.14 SUBD. 3-5. This provision applies to franchises governed by Minnesota law.
For a prospective All Team franchisee in Minnesota, this means that if they decide to sell their franchise, All Team cannot arbitrarily deny the transfer to a qualified buyer. The franchisor must have a legitimate, justifiable reason for withholding consent. This provision aims to protect the franchisee's investment and ability to realize the value of their business when they choose to exit.
It is important for franchisees to understand what constitutes "unreasonable" withholding of consent, as interpretations can vary. Franchisees should seek legal counsel to understand their rights and obligations under Minnesota law and the specific terms of the All Team franchise agreement regarding franchise transfers. This ensures they are prepared should they decide to sell their franchise in the future.