Under Minnesota law, can Better Blend unreasonably withhold consent to the transfer of a franchise?
Better_Blend Franchise · 2024 FDDAnswer from 2024 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 43–157)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, Minnesota Statutes, Section 80C.14, Subd. 3-5, states that consent to the transfer of a franchise will not be unreasonably withheld, except in certain specified cases. This provision specifically applies to franchises governed by Minnesota law.
For a prospective Better Blend franchisee in Minnesota, this means that Better Blend cannot arbitrarily deny a request to transfer the franchise to a qualified buyer. The franchisor must have a reasonable basis for withholding consent. This protection is designed to ensure that franchisees have the ability to realize the value of their business investment when they decide to sell.
It is important for potential franchisees to understand what constitutes a reasonable basis for withholding consent. While the FDD states that consent cannot be unreasonably withheld, it does not define what specific conditions would justify the franchisor's refusal to approve a transfer. A prospective franchisee should seek clarification from Better Blend regarding the criteria and procedures for franchise transfer approval to fully understand their rights and obligations under Minnesota law.