In Minnesota, can Crave Cookies unreasonably withhold consent to the transfer of a franchise?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- With respect to franchises governed by Minnesota law, the franchisor will comply with Minnesota Statutes, Section 80C.14, Subd. 3-5, which require (except in certain specified cases) (1) that a franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal of the franchise agreement and (2) that consent to the transfer of the franchise will not be unreasonably withheld.
Source: Item 23 — RECEIPTS (FDD pages 47–194)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, Minnesota franchisees have specific protections regarding franchise transfers. The Minnesota Addendum to the Disclosure Document states that Crave Cookies will comply with Minnesota Statutes, Section 80C.14, Subd. 3-5, which mandates that consent to the transfer of a franchise will not be unreasonably withheld. This means that Crave Cookies cannot arbitrarily deny a franchisee's request to transfer their franchise to a qualified buyer.
This provision is beneficial for Minnesota franchisees because it ensures they have the right to sell their business to a suitable candidate, providing a potential exit strategy. Without this protection, Crave Cookies could potentially block a transfer for reasons that are not justifiable, thereby harming the franchisee's ability to realize the value of their investment.
It is important for prospective Crave Cookies franchisees in Minnesota to understand this protection, as it provides a degree of security and flexibility in their business ownership. However, franchisees should also be aware that Crave Cookies still has the right to assess potential buyers and ensure they meet reasonable criteria. Franchisees should carefully review the franchise agreement and related Minnesota statutes to fully understand their rights and obligations regarding franchise transfers.