Under Minnesota law, what is the minimum notice period Carls must provide to a franchisee for non-renewal of the franchise agreement, and is there a cure period?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
With respect to franchises governed by Minnesota law, CJR will comply with Minnesota Statute § 80C.14, Subdivision 3, 4, and 5, which requires, except in certain cases, that a franchisee be given 90 days notice of termination (with 60 days to cure) and 180 days notice for non-renewal of franchise agreements.
Source: Item 23 — RECEIPTS (FDD pages 80–480)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, Minnesota Statute § 80C.14, Subd. 3-5, requires Carls to provide a franchisee with 180 days' notice for non-renewal of the franchise agreement.
In addition to the non-renewal notice, Minnesota law requires Carls to give a franchisee 90 days' notice of termination, along with 60 days to cure the issue, except in certain specified cases. This means that if Carls decides to terminate the franchise agreement, the franchisee has a period to address and resolve the reasons for termination.
These regulations are in place to protect franchisees in Minnesota, ensuring they have adequate time to address any issues or prepare for the end of their franchise agreement. Prospective franchisees should understand these protections and how they apply to their specific situation.