What page in the Chatime FDD discusses transfer and other dealings by the Chatime franchisee?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
Clauses 2, 13, and 15 of the Franchise Agreement, under the headings "Grant of rights," "Transfer and other dealings by the Franchisee," and "Termination of Agreement," will be supplemented by the addition of the following language:
Minnesota law provides franchisees with certain termination, non-renewal, and transfer rights. In sum, Minn. Stat. §80C.14, Subd. 3, 4, and 5 currently requires, except specified cases, that a franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice of nonrenewal of the Franchise Agreement, and that consent to the transfer of the franchise not be unreasonably withheld.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to the 2025 Chatime Franchise Disclosure Document, Clause 13 of the Franchise Agreement, under the heading "Transfer and other dealings by the Franchisee," is discussed on page 1 of the Minnesota Addendum. This clause is supplemented by additional language to comply with the Minnesota Franchise Act, specifically Minn. Stat. §80C.14, Subd. 3, 4, and 5.
This Minnesota law provides franchisees with certain rights regarding termination, non-renewal, and transfer. It generally requires that a franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice of nonrenewal of the Franchise Agreement. Additionally, consent to the transfer of the franchise cannot be unreasonably withheld.
For a prospective Chatime franchisee in Minnesota, this means that Chatime must provide adequate notice and opportunity to address any issues before termination or non-renewal. It also ensures that Chatime cannot arbitrarily deny a franchisee's request to transfer their franchise to a qualified buyer. This offers some protection to the franchisee's investment and business operations.
It is important for potential franchisees to carefully review the Minnesota Addendum in conjunction with the standard Franchise Agreement to fully understand their rights and obligations under Minnesota law. They should also consult with a legal professional to ensure they are fully informed of their rights.