Does the Buns On Fire franchisor have to provide a notice of termination to the franchisee?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
- Item 17, "Renewal, Termination, Transfer and Dispute Resolution," shall be amended by the addition of the following paragraphs:
With respect to franchisees 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 a franchisee be given ninety (90) days' notice of termination (with sixty (60) days to cure) and one hundred eighty (180) days' notice of non-renewal of the Franchise Agreement, and that consent to the transfer of the franchise not be unreasonably withheld.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, the franchisor's obligation to provide a notice of termination depends on the franchisee's location. Specifically, for franchisees governed by Minnesota law, Buns On Fire must comply with Minnesota Statutes Section 80C.14, Subds. 3, 4, and 5. These statutes generally require that the franchisee receive ninety (90) days' notice of termination, including sixty (60) days to cure any default, and one hundred eighty (180) days' notice of non-renewal of the Franchise Agreement. Furthermore, consent to the transfer of the franchise cannot be unreasonably withheld under Minnesota law.
This means that if a Buns On Fire franchisee operates in Minnesota, they are entitled to a specific notice period before termination or non-renewal, allowing them time to address any issues or prepare for the end of the franchise agreement. The inclusion of a cure period provides an opportunity for the franchisee to rectify any breaches of the agreement, potentially avoiding termination. The FDD explicitly states that these requirements are in recognition of Minnesota's franchise laws and regulations.
For prospective Buns On Fire franchisees outside of Minnesota, the FDD excerpt does not specify the notice requirements for termination or non-renewal. It is important for potential franchisees to review the complete Franchise Agreement and consult with a legal professional to understand the termination and renewal terms applicable in their specific state or jurisdiction. They should also inquire with the franchisor about the standard termination and non-renewal procedures and whether any specific state laws might affect these procedures.