What is the Canine Dimensions Franchisor's obligation regarding consent to a transfer?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
With respect to franchises governed by Minnesota law, we will comply with Minnesota Statute Section 80C.14, Subds. 3, 4 and 5, which require, except in certain specified cases, that you be given 90 days notice of termination (with 60 days to cure) and 180 days notice for non-renewal of the Agreement; and that consent to the transfer of the franchise will not be unreasonably withheld.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to the 2025 Canine Dimensions Franchise Disclosure Document, the franchisor's obligation regarding consent to the transfer of a franchise is outlined specifically for franchises governed by Minnesota law. In such cases, Canine Dimensions will adhere to Minnesota Statute Section 80C.14, Subds. 3, 4, and 5. These statutes mandate that, except under certain specified conditions, franchisees must receive a 90-day notice of termination, which includes a 60-day period to address and cure any issues. Additionally, a 180-day notice is required for non-renewal of the franchise agreement.
Furthermore, the statute stipulates that consent to the transfer of the franchise will not be unreasonably withheld. This provision ensures that Canine Dimensions cannot arbitrarily deny a franchisee's request to transfer their franchise to a qualified buyer. The intention is to protect the franchisee's investment and provide a reasonable exit strategy, assuming the proposed transferee meets the franchisor's standard qualifications.
This requirement applies specifically to franchises operating within Minnesota, as indicated in the addendum to the disclosure document. For franchises outside of Minnesota, the FDD does not specify that consent to transfer cannot be unreasonably withheld, so the standard franchise agreement terms would apply. A prospective franchisee should consult the franchise agreement and discuss transfer conditions with Canine Dimensions to fully understand the requirements and potential limitations on transferring their franchise.