In Minnesota, can Beehive Homes unreasonably withhold consent to the transfer of a franchise?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- With respect to franchises governed by Minnesota law, the franchisor will comply with Minnesota Statutes, Section 80C.14, Subd. 3-5, which require (except in certain specified cases) (1) 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 (2) that consent to the transfer of the franchise will not be unreasonably withheld.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, Minnesota Statutes, Section 80C.14, Subd. 3-5, requires that consent to the transfer of a Beehive Homes franchise will not be unreasonably withheld. This means that Beehive Homes cannot arbitrarily deny a franchisee's request to transfer their franchise to another party without a legitimate, justifiable reason.
For a prospective Beehive Homes franchisee in Minnesota, this provides a degree of protection and flexibility. If they decide to sell their franchise, Beehive Homes must have a reasonable basis for refusing the transfer. This prevents Beehive Homes from blocking a sale simply because they want to control who operates the franchise, giving the franchisee more control over their investment exit strategy.
However, it is important to note that Beehive Homes still has the right to ensure that any potential transferee meets their standards and qualifications. They can deny a transfer if the proposed buyer lacks the necessary financial resources, experience, or commitment to uphold the Beehive Homes brand standards. The key is that these reasons must be objectively reasonable and not based on arbitrary or discriminatory factors.
This protection is specific to Minnesota due to state franchise laws. Franchisees in other states may not have the same level of protection against unreasonable withholding of consent to transfer. Therefore, prospective franchisees should carefully review the franchise laws of their specific state and consult with an attorney to fully understand their rights and obligations.