Is the 90-day notice of non-renewal for City Publications franchises in Minnesota waivable by the franchisee?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
FOR THE STATE OF MINNESOTA:
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- ITEM 13 of the Disclosure Document is amended as follows:
- ◼ As required by the Minnesota Franchise Act, Minn. Stat. Sec. 80C.12(g), Franchisor will reimburse the Franchisee for any costs incurred by the Franchisee in the defense of the Franchisee's right to use the Marks, so long as the Franchisee was using the Marks in the manner authorized by Franchisor, and so long as Franchisor is timely notified of the claim and is given the right to manage the defense of the claim including the right to compromise, settle or otherwise resolve the claim, and to determine whether to appeal a final determination of the claim.
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- ITEM 17 of the Disclosure Document is amended as follows:
- ◼ With respect to franchises governed by Minnesota law, the Franchisor will comply with Minn. Stat. Sec. 80C.14, Subds. 3, 4 and 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 of non-renewal of the Franchise Agreement.
- ◼ Item 17 does not provide for a prospective general release of claims against Franchisor which may be subject to the Minnesota Franchise Law. Minn. Rule 2860.4400D prohibits a franchisor from requiring a franchisee to assent to a general release.
- ◼ Minn. Stat. §80C.21 and Minn. Rule 2860.4400J prohibit us from requiring litigation to be conducted outside Minnesota. In addition, nothing in the Disclosure Document or Franchise Agreement can abrogate or reduce any of your rights as provided for in Minnesota Statutes, Chapter 80C, or your rights to any procedure, forum or remedies provided for by the laws of the jurisdiction.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, Minnesota law requires that City Publications franchisees, except in certain specified cases, must be given 180 days notice of non-renewal of the Franchise Agreement. The FDD states that Item 17 of the disclosure document does not provide for a prospective general release of claims against City Publications, which may be subject to the Minnesota Franchise Law. Minnesota Rule prohibits City Publications from requiring a franchisee to assent to a general release.
This means that City Publications must provide the required notice, and a franchisee cannot be forced to waive their right to this notice through a general release. This protection ensures franchisees have adequate time to prepare for the end of their franchise term and explore other business opportunities.
This provision is beneficial for prospective City Publications franchisees in Minnesota as it protects their rights and ensures they receive adequate notice before the non-renewal of their franchise agreement. It prevents the franchisor from circumventing the law by requiring franchisees to sign away their rights.