In Minnesota, can Cool Binz unreasonably withhold consent to the transfer of a Cool Binz franchise?

According to Cool Binz's 2025 Franchise Disclosure Document, if a Cool Binz franchise is governed by Minnesota law, Cool Binz will not unreasonably withhold consent to the transfer of the franchise. This protection is explicitly stated within an addendum to the standard franchise agreement for franchisees operating in Minnesota. This addendum ensures Cool Binz complies with Minn. Stat. Sec. 80C.14, Subds. 3, 4, and 5.

This provision is beneficial for prospective Cool Binz franchisees in Minnesota, as it prevents Cool Binz from arbitrarily denying a transfer request. However, the FDD also states that Cool Binz will determine if the conditions for transfer are met in its sole discretion. This means that while Cool Binz cannot unreasonably withhold consent, they still have significant control over the transfer process and can set conditions that must be met for a transfer to be approved.

It is important to note that this protection applies specifically to franchises governed by Minnesota law. Franchisees should carefully review the franchise agreement and any related documents to fully understand their rights and obligations regarding franchise transfers. Franchisees should consult with a legal professional to fully understand the implications of this clause and how it may affect their ability to transfer their Cool Binz franchise in the future.