Under Minnesota law, what minimum notice period is Chesters required to provide for termination of a franchise agreement (with opportunity to cure), except in specified cases?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
With respect to franchises governed by Minnesota law, the franchiser will comply with Minnesota Statute 80C.14 Subd. 3-5, which 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 for non-renewal of the franchise agreement and that consent to the transfer of the franchise will not be unreasonably withheld.
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, Minnesota law requires Chesters to provide a franchisee with at least 90 days' notice of termination, along with 60 days to cure the issue, except in certain specified cases. Additionally, Minnesota law requires Chesters to provide 180 days' notice for non-renewal of the franchise agreement.
This regulation ensures that Chesters franchisees in Minnesota have adequate time to address any issues that could lead to termination, or to prepare for the end of their franchise agreement if it is not being renewed. The 60-day cure period allows franchisees to rectify any breaches of contract, potentially saving their franchise. The longer 180-day notice for non-renewal provides franchisees with ample time to plan their next business steps, whether that involves selling the franchise, starting a new business, or other opportunities.
These protections are specific to Minnesota and reflect the state's franchise laws, which aim to balance the interests of both the franchisor and the franchisee. Prospective Chesters franchisees should be aware of these rights and how they differ from franchise agreements in other states, as the standard agreement may be modified by state-specific addenda.