What is the minimum notice period Belocal must provide to a franchisee in Minnesota for termination of the franchise agreement, according to Minnesota law?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Under Minnesota Statutes, Section 80C.21, to the extent that any condition, stipulation, or provision contained in the Franchise Agreement (including any choice of law provision) purports to bind any person who, at the time of acquiring a franchise is a resident of Minnesota, or, in the case of a partnership or corporation, organized or incorporated under the laws of Minnesota, or purporting to bind a person acquiring any franchise to be operated in Minnesota to waive compliance with the Minnesota Franchise Law, such condition, stipulation, or provision may be void and unenforceable under the non-waiver provision of the Minnesota Franchise Law.
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- Minnesota Rule 2860.4400(J) prohibits the franchisor from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring the franchisee to consent to liquidated damages, termination penalties, or judgment notes. This does not bar an exclusive arbitration clause. In addition, nothing the disclosure document or agreement can abrogate or reduce any of franchisee's right as provided for in Minnesota Statutes, Chapter 80C, or franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, Minnesota Statute 80C.21 addresses conditions, stipulations, or provisions in the franchise agreement. It states that if a franchisee is a resident of Minnesota when acquiring the franchise, or if the franchise is operated in Minnesota, any provision that waives compliance with the Minnesota Franchise Law may be void and unenforceable due to the non-waiver provision of the Minnesota Franchise Law.
Additionally, Minnesota Rule 2860.4400(J) prohibits Belocal from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring the franchisee to consent to liquidated damages, termination penalties, or judgment notes. However, an exclusive arbitration clause is not barred. The rule also states that nothing in the disclosure document or agreement can reduce any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, including rights to any procedure, forum, or remedies provided by the laws of the jurisdiction.
In essence, these regulations ensure that Minnesota franchisees retain their rights under Minnesota law, regardless of what the franchise agreement might state. This protection includes the right to a local legal forum, the right to a jury trial, and the right to legal remedies provided by Minnesota law. These provisions are designed to protect Minnesota franchisees from potentially overbearing or unfair terms in the franchise agreement.