What is the minimum notice period Carvel must provide a franchisee in Minnesota for termination of the Franchise Agreement, and how long does the franchisee have to cure the default?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 17 (Default and Termination) of the Franchise Agreement will be supplemented by adding the following as Section 17.6 of the Franchise Agreement, which will be considered an integral part of the Franchise Agreement:
- Minnesota law provides you with certain termination rights.
In sum, Minn.
Stat. § 80C.14 (subds. 3 and 5) currently requires, except in certain specified cases, that you be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice of nonrenewal of this Agreement, and that consent to the transfer of the Franchise not be unreasonably withheld.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, Minnesota franchisees are entitled to specific termination rights under Minnesota law. Carvel must provide a franchisee with 90 days' notice of termination, except in certain specified cases. During this 90-day notice period, the franchisee has 60 days to cure the default that led to the termination notice.
This Minnesota-specific protection ensures that Carvel franchisees in Minnesota have adequate time to address any issues that could lead to termination. This allows the franchisee an opportunity to rectify the situation and potentially save their franchise. Without this protection, a franchisee could face a much shorter timeframe to resolve a default, potentially leading to an unfair termination.
It is important for prospective Carvel franchisees in Minnesota to understand these rights and how they differ from the standard termination terms in the Franchise Agreement. Franchisees should consult with a legal professional to fully understand their rights and obligations under Minnesota law and the Franchise Agreement.