What notice period is Casiola Franchisor required to give the franchisee for termination of the agreement in Minnesota, along with the cure period?
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 the 2024 Casiola Franchise Disclosure Document, Minnesota franchisees are entitled to specific termination rights under Minnesota law. Casiola must provide a franchisee with 90 days' notice of termination, along with a 60-day period to cure the issue that led to the termination notice.
This amendment to Item 17 of the FDD ensures that Casiola complies with Minnesota Statutes regarding franchise terminations. This means that if Casiola decides to terminate a franchise agreement in Minnesota (except in certain specified cases), they must give the franchisee a 90-day heads-up. During those 90 days, the franchisee has 60 days to fix whatever problem caused Casiola to issue the termination notice.
This provides Minnesota Casiola franchisees with more protection than franchisees in some other states, as it gives them an opportunity to save their franchise if they can correct the issue within the cure period. It is important to note the phrase "except in certain specified cases," which suggests there may be situations where this 90-day notice and 60-day cure period do not apply, and the franchisee should consult the full text of the Minnesota statutes to understand those exceptions.