In Minnesota, under what conditions can Best Brains withhold consent to the transfer of a franchise?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
- With respect to franchises governed by Minnesota law, the franchisor will comply with Minn. Stat. Sec. 80C.14 Subds. 3, 4, and 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 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to the 2025 Best Brains Franchise Disclosure Document, Minnesota law dictates the conditions under which Best Brains can withhold consent to a franchise transfer. Specifically, Best Brains's ability to withhold consent must be reasonable. This means that Best Brains cannot arbitrarily deny a transfer; there must be a legitimate, justifiable reason for doing so.
This provision protects franchisees by ensuring they can sell their business to a qualified buyer without facing unreasonable obstacles from Best Brains. It aligns with Minnesota Statutes, which aim to provide a fair balance between the rights of the franchisor and the franchisee.
A prospective Best Brains franchisee in Minnesota should understand that while Best Brains has the right to approve or deny a transfer, that right is limited by the requirement of reasonableness. If a franchisee believes Best Brains is unreasonably withholding consent, they may have legal recourse under Minnesota law.