What is the cure period for Alloy if a franchisee alleges a material breach?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
ADDENDUM TO THE FRANCHISE AGREEMENT REQUIRED FOR MINNESOTA FRANCHISEES
This Addendum pertains to franchises sold in the State of Minnesota and is for the purpose of complying with Minnesota statutes and regulations. Notwithstanding anything which may be contained in the body of the Franchise Agreement to the contrary, the Agreement is amended as follows:
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- Minnesota law provides franchisees with certain termination and nonrenewal rights. As of the date of this Franchise Agreement, Minn. Stat. Sec. 80C.14, Subd. 3, 4 and 5 require, except in certain specified cases, that a franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for nonrenewal of the franchise agreement.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 51–56)
What This Means (2025 FDD)
The 2025 Alloy FDD includes an addendum applicable to franchises sold in Minnesota, which addresses termination and nonrenewal rights. According to Minnesota law, franchisees are typically given 90 days' notice of termination, with 60 days to cure, and 180 days' notice for nonrenewal of the franchise agreement. This addendum modifies the standard franchise agreement to comply with Minnesota statutes, providing franchisees in Minnesota with specific rights regarding termination and nonrenewal.
For prospective Alloy franchisees in Minnesota, this means they have a legally mandated cure period of 60 days if Alloy seeks to terminate the agreement. This provides a safety net, allowing franchisees time to address any issues and potentially avoid termination. The 90-day notice of termination and 180-day notice of nonrenewal also offer franchisees more time to prepare for these transitions, whether by rectifying the breach or planning for the end of the franchise term.
Franchisees outside of Minnesota should be aware that the standard Alloy franchise agreement may have different terms regarding termination and cure periods. It is important to carefully review the franchise agreement and any state-specific addenda to understand the full scope of their rights and obligations. Franchisees should consult with a legal professional to fully understand their rights under the franchise agreement and applicable state laws.