Under what circumstances can Angry Chickz refuse a transfer of ownership of a franchise?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
With respect to franchises governed by Minnesota law, the Franchisor will comply with Minnesota Statute 80C.14 Subd. 3-5, which 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 non-renewal of the franchise agreement and that consent to the transfer of the franchise will not be unreasonably withheld.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
Based on the 2025 Angry Chickz Franchise Disclosure Document addendum for the state of Minnesota, Angry Chickz must comply with Minnesota Statute 80C.14 Subd. 3-5 regarding franchise transfers. This statute generally requires that consent to the transfer of a franchise will not be unreasonably withheld.
This implies that Angry Chickz can refuse a transfer, but only if they have a reasonable basis for doing so. The specific conditions under which a refusal would be considered reasonable are not detailed in this excerpt. However, the inclusion of this addendum suggests that Minnesota law provides franchisees with certain protections regarding franchise transfers that may not exist in other states.
Prospective franchisees in Minnesota should be aware of this protection, but should also seek legal counsel to fully understand their rights under Minnesota Statute 80C.14 Subd. 3-5. Franchisees outside of Minnesota may not have the same protections regarding transfer rights, so it's important to review the specific terms of the franchise agreement and any applicable state laws.