What Minnesota statute dictates the notice requirements for termination and non-renewal of a City Publications franchise agreement?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
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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, for franchises governed by Minnesota law, City Publications must comply with Minn. Stat. Sec. 80C.14, Subds. 3, 4 and 5. This statute mandates that, except in specific cases, City Publications must provide a franchisee with 90 days' notice of termination (with 60 days to cure) and 180 days' notice of non-renewal of the Franchise Agreement.
This amendment to Item 17 of the Disclosure Document ensures that City Publications adheres to Minnesota state law regarding franchise termination and non-renewal. It clarifies the notice periods a franchisee is entitled to, offering a degree of protection and time to prepare for the end of the franchise agreement, whether through termination or non-renewal. The inclusion of a cure period for termination provides an opportunity for franchisees to rectify any issues leading to the termination notice.
Furthermore, the FDD states that Item 17 does not provide for a prospective general release of claims against City Publications, which may be subject to the Minnesota Franchise Law. Minnesota Rule 2860.4400D prohibits City Publications from requiring a franchisee to assent to a general release. Also, Minn. Stat. §80C.21 and Minn. Rule 2860.4400J prohibit City Publications from requiring litigation to be conducted outside Minnesota. The disclosure document and franchise agreement cannot reduce any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or their rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
These stipulations are important for prospective City Publications franchisees in Minnesota as they highlight specific legal protections afforded to them under state law. Franchisees should consult with legal counsel to fully understand their rights and obligations under the franchise agreement and applicable Minnesota statutes.