What is the cure period associated with the 90-day notice of termination required by Minnesota law for Casiola franchises?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
- C. Item 17, "Renewal, Termination, Transfer and Dispute Resolution," Item 17 is supplemented by the addition of the following: With respect to franchises 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 you be given 90 days- notice of termination (with 60 days to cure) and 180 days-notice of non-renewal of the Agreement.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, Minnesota law requires that Casiola franchisees be given 90 days' notice of termination, along with a 60-day period to cure any default. This amendment to Item 17 in the FDD ensures that Casiola complies with Minnesota Statutes Section 80C.14, Subdivisions 3, 4, and 5, which outline these termination rights.
This means that if Casiola intends to terminate a franchise agreement in Minnesota (except in certain specified cases), they must provide the franchisee with a written notice at least 90 days in advance. During this 90-day period, the franchisee has 60 days to correct or 'cure' the issue that led to the termination notice. If the franchisee successfully addresses the issue within this cure period, Casiola cannot terminate the agreement.
This provision offers significant protection to Casiola franchisees in Minnesota, as it provides them with an opportunity to rectify any breaches of the franchise agreement before facing termination. It also ensures that franchisees have sufficient time to seek legal counsel or negotiate with Casiola to resolve any disputes. This is more generous than the Michigan Franchise Agreement Amendment, which states that a reasonable opportunity to cure a failure need not be more than 30 days.