Under Minnesota law, what is the required notice period Carvel must provide to a franchisee before terminating the Franchise Agreement (excluding specified cases)?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- With respect to franchises governed by Minnesota law, we will comply with Minn. Stat. § 80C.14, Subds. 3, 4, and 5, that require, except in certain specified cases, that a franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice of non-renewal of the Franchise Agreement, and that we not unreasonably withhold consent to the transfer of the franchise.
-
- Minn. Stat. § 80C.21 and Minn. Rule 2860.4400J prohibit us from requiring that litigation be conducted outside Minnesota. In addition, nothing in the Disclosure Document or Franchise Agreement abrogate or reduce any of your rights provided for in Minnesota statutes Chapter 80C, or your rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, Minnesota law requires Carvel to provide a franchisee with 90 days' notice of termination, along with 60 days to cure the issue, except in certain specified cases. Additionally, Carvel must provide 180 days' notice for non-renewal of the Franchise Agreement.
This stipulation is in place to protect franchisees, giving them adequate time to address any issues that could lead to termination or to prepare for the end of their franchise agreement. The 60-day cure period allows franchisees an opportunity to rectify any defaults before termination becomes final. The 180-day notice for non-renewal provides franchisees with ample time to plan their next steps, whether that involves seeking a new business venture or negotiating a renewal.
It is important for prospective Carvel franchisees in Minnesota to understand these rights, as they provide a level of security and protection under state law. Franchisees should be aware of the specific conditions that might lead to termination and the steps they can take to avoid such outcomes. They should also note the circumstances under which these notice periods might not apply, as indicated by the phrase "except in certain specified cases."
This Minnesota addendum to the franchise agreement ensures that Carvel franchisees in Minnesota receive fair treatment and are afforded specific rights under Minnesota law, offering a more secure and predictable business environment.