What Minnesota statutes related to franchise termination and non-renewal will Bft comply with for franchises governed by Minnesota law?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
With respect to franchises governed by Minnesota law, we will comply with Minn. Stat. Sec. 80C.14, Subds. 3, 4 and 5 which require, except in certain specified cases, that you be given 90 days' notice of termination (with 60 days to cure) of the Franchise Agreement and Multi-Unit Agreement and 180 days' notice for non-renewal of the Franchise Agreement and Multi-Unit Agreement.
Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J prohibits us from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial or requiring the Area Developer or Franchisee to consent to liquidated damages, termination penalties or judgment notes. In addition, nothing in the Disclosure Document, Multi-Unit Agreement or Franchise Agreement can abrogate or reduce any of Area Developer's or Franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or Area Developer's or Franchisee's rights to any procedure, forum or remedies provided for by the laws of the jurisdiction.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, for franchises governed by Minnesota law, Bft will comply with Minn. Stat. Sec. 80C.14, Subds. 3, 4, and 5. These statutes generally require Bft to provide the franchisee with specific notice periods for termination and non-renewal of the franchise agreement.
Specifically, franchisees must be given 90 days' notice of termination, which includes a 60-day period to cure any defaults, except in certain specified cases. Additionally, Bft must provide 180 days' notice for non-renewal of the Franchise Agreement and Multi-Unit Agreement.
Furthermore, Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J prevent Bft from requiring litigation to occur outside of Minnesota, mandating jury trial waivers, or compelling Area Developers or Franchisees to consent to liquidated damages, termination penalties, or judgment notes. The disclosure also states that nothing within the disclosure document, multi-unit agreement, or franchise agreement can reduce any rights provided to the Area Developer or Franchisee as provided for in Minnesota Statutes, Chapter 80C, or their rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.