Can Boulder Designs unreasonably withhold consent to the transfer of a franchise in Minnesota?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
The franchisee cannot consent to the franchisor obtaining injunctive relief. The franchisor may seek injunctive relief. See Minn. Rules 2860.4400J.
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- No statement, questionnaire, or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including, fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed with the franchise.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
Based on the 2025 FDD, the documents provided do not specify whether Boulder Designs can unreasonably withhold consent to the transfer of a franchise in Minnesota. However, the FDD does include an amendment to the franchise agreement required by the state of New York, suggesting that franchise agreements may be subject to state-specific regulations.
While the FDD does not directly address franchise transfer consent in Minnesota, it does state that the franchisee cannot consent to the franchisor obtaining injunctive relief, referencing Minnesota Rules 2860.4400J. Additionally, the FDD states that no statement signed by a franchisee can waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on any statement made by the franchisor. This provision supersedes any other term of any document executed with the franchise.
To fully understand the conditions for franchise transfer in Minnesota, a prospective Boulder Designs franchisee should consult the full franchise agreement and any state-specific addenda. They should also seek legal counsel to ensure they are aware of their rights and obligations under Minnesota franchise law regarding transfer conditions and franchisor consent.