In Minnesota, can consent to the transfer of a Bombs Away franchise be unreasonably withheld?
Bombs_Away 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 36–117)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, Minnesota Statutes, Section 80C.14, Subd. 3-5, requires that consent to the transfer of a Bombs Away franchise will not be unreasonably withheld. This amendment applies specifically to franchises governed by Minnesota law.
This means that if a Bombs Away franchisee in Minnesota decides to sell their franchise, Bombs Away cannot arbitrarily deny the transfer to a qualified buyer. The franchisor must have a legitimate, justifiable reason for withholding consent. This provision protects the franchisee's investment and ensures they can realize the value of their business when they choose to sell, provided they find a suitable buyer who meets Bombs Away's reasonable criteria.
This protection is particularly important because it prevents Bombs Away from hindering a sale based on subjective or unfair reasons. However, Bombs Away still retains the right to ensure that any potential buyer meets their standards for financial stability, operational experience, and commitment to the Bombs Away brand. Franchisees should carefully review the franchise agreement and any related addenda to fully understand the conditions under which a transfer may be approved or denied.