Under Minnesota law, what is the required notice period Cinnabon must provide to a franchisee before termination of the Franchise Agreement, and how long does the franchisee have to cure the issue?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 17 (Default and Termination) of the Franchise Agreement will be supplemented by adding the following as Section 17.6 of the Franchise Agreement, which will be considered an integral part of the Franchise Agreement:
- Minnesota law provides you with certain termination rights.
In sum, Minn.
Stat. § 80C.14 (subds. 3 and 5) currently requires, except in certain specified cases, that you be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice of nonrenewal of this Agreement, and that consent to the transfer of the Franchise not be unreasonably withheld.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, Minnesota law requires Cinnabon to provide a franchisee with 90 days' notice of termination, except in certain specified cases. This means that if Cinnabon intends to terminate a franchise agreement in Minnesota, they must inform the franchisee in writing at least 90 days before the termination date.
Furthermore, the franchisee is given 60 days to cure the issue that led to the termination notice. This cure period allows the franchisee an opportunity to correct the problem or violation that prompted Cinnabon to issue the termination notice. If the franchisee successfully addresses the issue within this 60-day period, Cinnabon may be obligated to withdraw the termination notice.
It's important to note that these protections are provided under Minnesota Statutes § 80C.14 (subds. 3 and 5). Prospective franchisees should carefully review the specific conditions and exceptions outlined in the statute to fully understand their rights and obligations under Minnesota law. This ensures that both Cinnabon and the franchisee are aware of their responsibilities and recourse options in the event of a potential termination.