What is the minimum notice period Belocal must provide to a franchisee in Minnesota for nonrenewal of the franchise agreement, according to Minnesota law?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Under Minnesota law, and except in certain specified cases, we must give you 90 days notice of termination with 60 days to cure. We also must give you at least 180 days notice of our intention not to renew a franchise and sufficient opportunity to recover the fair market value of the franchise as a going concern. To the extent that the Franchise Agreement is inconsistent with Minnesota law, Minnesota law will control.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, Minnesota law requires Belocal to provide a minimum of 180 days' notice of nonrenewal of the franchise agreement to a franchisee in Minnesota, except in certain specified cases. Additionally, the franchisee must be given sufficient opportunity to recover the fair market value of the franchise as a going concern.
This requirement is outlined in the Minnesota Addendum to the Franchise Disclosure Document, specifically referencing Item 17. The FDD states that to the extent the Franchise Agreement is inconsistent with Minnesota law, Minnesota law will take precedence. This ensures that Belocal franchisees in Minnesota receive adequate notice to prepare for the nonrenewal of their franchise and have an opportunity to recoup their investment.
This protection is more robust than in many other states, where notice periods can be significantly shorter or non-existent, depending on the specific franchise agreement and state laws. Prospective Belocal franchisees in Minnesota should be aware of this provision as a beneficial aspect of franchising in that state, providing a longer runway to plan their next business steps or negotiate a renewal.