What page number in the Chatime Franchise Agreement discusses Transfer and Other Dealings by Franchisee for a Chatime franchise?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
In recognition of the requirements of the Minnesota Franchise Act, Minn. Stat. §§80C.01 through 80C.22, and of the Rules and Regulations promulgated thereunder by the Minnesota Commissioner of Commerce, Minn. Rules §§2860.0100 through 2860.9930, the parties to the attached Chatime Franchise, LLC Franchise Agreement (the "Franchise Agreement") agree as follows:
- 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 Chatime's 2025 Franchise Disclosure Document, the Minnesota Amendment to the Chatime Franchise Agreement references Clause 13, which is under the heading "Transfer and other dealings by the Franchisee." This clause is supplemented with language regarding Minnesota law, which provides franchisees with certain termination, non-renewal, and transfer rights. Specifically, Minnesota Statute §80C.14, Subdivisions 3, 4, and 5, requires that franchisees 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, except in specified cases.
Additionally, the Minnesota Addendum to the Chatime Franchise Disclosure Document states that Item 17(m), under the heading "Conditions for Franchisor Approval of Transfer," will be amended by adding language at the end of the section clarifying that any general release will not apply to any liability under the Minnesota Franchise Law. Item 17(k), which discusses "'Transfer' by Franchisee – Defined," will also be amended to include the statement that Minnesota law provides franchisees with certain termination, non-renewal, and transfer rights, as outlined in Minn. Stat. §80C.14.
These amendments and additions ensure that Chatime franchisees in Minnesota are aware of their rights under Minnesota law regarding termination, non-renewal, and transfer, and that these rights are protected despite any general releases or other provisions in the Franchise Agreement. Prospective franchisees should carefully review these amendments and consult with legal counsel to fully understand their rights and obligations under the Franchise Agreement and applicable state laws.