What is the required action for Chicken Guy regarding Minnesota Statute § 80C.14 when terminating a franchise governed by Minnesota law?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
unless the use is in accordance with the requirements of the Franchise Agreement and the System.
2. Notice of Termination. The following statement is added to Item 17:
With respect to franchises governed by Minnesota law, Chicken Guy will comply with Minnesota Statute § 80C.14, subdivisions 3, 4, and 5 which requires, except in certain
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–46)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, when a franchise is governed by Minnesota law, Chicken Guy must adhere to Minnesota Statute § 80C.14, Subdivisions 3, 4, and 5. This statute mandates that, except in specific situations, Chicken Guy must provide the franchisee with 90 days' notice of termination, which includes a 60-day period to cure any issues. Additionally, the statute requires 180 days' notice for non-renewal of the franchise agreement. This requirement is designed to protect franchisees operating in Minnesota.
This regulation ensures that Chicken Guy franchisees in Minnesota receive adequate warning and opportunity to address any issues before termination. The 90-day notice period, with 60 days to cure, allows franchisees time to rectify any breaches of the franchise agreement. The 180-day notice for non-renewal provides franchisees with a longer window to prepare for the end of their franchise term, potentially allowing them to make alternative business arrangements or negotiate a renewal.
It is important to note that these notice requirements may not apply in certain unspecified cases. Franchisees should consult the full text of Minnesota Statute § 80C.14 to understand the exceptions and specific conditions under which these protections apply. Prospective franchisees should seek legal counsel to fully understand their rights and obligations under Minnesota law.