Does Minnesota law allow Craters & Freighters to unreasonably withhold consent to the transfer of a franchise?

According to Craters & Freighters' 2025 Franchise Disclosure Document, Minnesota law addresses the franchisor's ability to withhold consent for franchise transfers. Specifically, Minnesota statutes stipulate that Craters & Freighters cannot unreasonably withhold consent to the transfer of a franchise. This provision aims to protect franchisees by ensuring they can transfer their business to a qualified buyer without facing arbitrary obstacles from the franchisor.

This legal protection is significant for prospective Craters & Freighters franchisees in Minnesota. It means that if a franchisee decides to sell their business, Craters & Freighters must have a legitimate, justifiable reason for refusing to approve the transfer. This prevents the franchisor from blocking a sale based on personal preferences or other unreasonable grounds. The franchisee has the right to appeal if they believe consent is being unreasonably withheld.

It is important for potential franchisees to understand their rights under Minnesota law, as outlined in Minn. Stat. Sec. 80C.14, Subd. 3, 4 and 5. This statute provides franchisees with certain termination and nonrenewal rights, including the right to receive 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal of the Franchise Agreement. These regulations, combined with the restriction on unreasonably withholding consent to transfer, offer a degree of security and flexibility to Craters & Freighters franchisees operating in Minnesota.