What is the minimum notice period Auntie Annes must provide to a franchisee in Minnesota before nonrenewal of the Franchise Agreement, according to Minnesota law?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
In sum, Minn. Stat. § 80C.14 (subds. 3 and 5) currently requires, except in certain specified cases, that you be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice of nonrenewal of this Agreement, and that consent to the transfer of the Franchise not be unreasonably withheld.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, Minnesota law requires Auntie Annes to provide a franchisee with 180 days' notice of nonrenewal of the Franchise Agreement, except in certain specified cases. This requirement is part of Minnesota Statutes § 80C.14 (subds. 3 and 5).
In addition to the nonrenewal notice, Minnesota law also stipulates that a franchisee must be given 90 days' notice of termination, along with 60 days to cure the issue leading to termination, again with exceptions for certain specified cases. Furthermore, Auntie Annes cannot unreasonably withhold consent for the transfer of the franchise under Minnesota law.
Prospective franchisees in Minnesota should be aware of these protections under Minnesota law, which are integrated into the Franchise Agreement through an addendum. These provisions ensure that franchisees have adequate time to address any issues that could lead to termination and sufficient notice if Auntie Annes decides not to renew the agreement. This also protects the franchisee's ability to transfer the franchise to another party.