In Minnesota, can Buns On Fire unreasonably withhold consent to the transfer of a franchise?
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, Minnesota franchisees are protected by Minnesota state law regarding franchise transfers. Specifically, Buns On Fire must comply with Minn. Stat. Sec. 80C.14, Subds. 3, 4, and 5.
This statute mandates that, except in certain specific cases, Buns On Fire cannot unreasonably withhold consent to the transfer of a franchise in Minnesota. This provision ensures that franchisees are not unfairly restricted when they seek to sell or transfer their franchise to a qualified buyer.
Additionally, the statute requires Buns On Fire to provide franchisees with 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. These stipulations provide franchisees with adequate time to address any issues that could lead to termination or non-renewal, and to plan accordingly.
This addendum to Item 17 of the Buns On Fire FDD ensures that Minnesota franchisees receive the protections afforded to them under Minnesota law, superseding any conflicting terms in the standard franchise agreement.