In Minnesota, can Buns On Fire require a franchisee to consent to termination penalties?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
In recognition of the requirements of the Minnesota Franchises Law, Minn. Stat. §§ 80C.01 through 80C.22, and of the Rules and Regulations promulgated thereunder by the Minnesota Commissioner of Commerce, Minn. Rules §§ 2860.0100 through 2860.9930, the Franchise Disclosure Document for Buns on Fire, for use in the State of Minnesota shall be amended to include the following:
- Item 13, "Trademarks," shall be amended by the addition of the following paragraph at the end of the Item:
Pursuant to Minnesota Stat. Sec. 80C.12, Subd. 1(g), we are required to protect any rights which you have to use our proprietary marks.
- 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 FDD, Minnesota franchise law includes specific stipulations that affect the franchise agreement. Item 23 includes an addendum specific to Minnesota, stating that the Franchise Disclosure Document for Buns on Fire in Minnesota must be amended to comply with Minn. Stat. Sec. 80C.14, Subds. 3, 4, and 5.
However, the FDD excerpt does not explicitly address whether Buns On Fire can require a franchisee in Minnesota to consent to termination penalties. The addendum focuses on providing notice of termination and non-renewal, as well as transfer consent, in accordance with Minnesota law.
To determine whether Buns On Fire can enforce termination penalties in Minnesota, a prospective franchisee should ask the franchisor for clarification on this specific point. They should also consult with a legal professional familiar with Minnesota franchise law to ensure full compliance and understanding of their rights and obligations.