What Minnesota statutes regarding termination and non-renewal of franchise agreements does Bojangles agree to comply with for franchises governed by Minnesota law?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
- With respect to franchises governed by Minnesota law, Franchisor will comply with Minnesota Statute § 80C.14, Subdivisions 3, 4, and 5, which requires, except in certain cases, that (1) a franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal of franchise agreements; and (2) that consent to the transfer of a franchise will not be unreasonably withheld.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, for franchises governed by Minnesota law, Bojangles will adhere to Minnesota Statute § 80C.14, Subdivisions 3, 4, and 5. This statute stipulates that, except in specific situations, Bojangles must provide a franchisee with 90 days' notice of termination, including a 60-day period to address the issues leading to termination. Additionally, Bojangles must provide 180 days' notice for non-renewal of franchise agreements. The statute also mandates that Bojangles cannot unreasonably withhold consent for the transfer of a franchise.
This compliance ensures that Bojangles franchisees in Minnesota receive adequate notice and opportunity to rectify any issues before termination. The extended notice period for non-renewal provides franchisees with more time to plan their next steps, whether that involves selling the franchise, negotiating a renewal, or exiting the business. The provision regarding the transfer of a franchise protects the franchisee's ability to sell their business to a qualified buyer, preventing Bojangles from arbitrarily blocking a sale.
These protections are important for franchisees as they provide a degree of security and fairness in the franchise relationship. Franchise laws like these in Minnesota aim to balance the power between franchisors and franchisees, ensuring that franchisees are not subject to abrupt or unfair termination or non-renewal. Prospective franchisees should be aware of these rights and ensure that Bojangles adheres to these statutes.
Furthermore, the FDD states that nothing in the disclosure document or agreements can reduce any of Franchisee's rights 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. Any claims arising under the Minnesota Franchise Act must be brought within 3 years after the grant of the franchise as required by Minnesota Statute, Section 80C.17, Subd. 5. Franchisee cannot consent to Franchisor obtaining injunctive relief, but Franchisor may seek injunctive relief. See Minnesota Rule 2860.4400J.