Under Minnesota law, what minimum notice period will Cream provide for non-renewal of the Franchise Agreement and Area Development Agreement?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
- The following is added at the end of the chart in Item 17:
With respect to franchises governed by Minnesota law, we will comply with Minn. Stat. Sec. 80C.14, Subds. 3, 4 and 5 which require, except in certain specified cases, that you be given 90 days' notice of termination (with 60 days to cure) of the Franchise Agreement and Area Development Agreement and 180 days' notice for non-renewal of the Franchise Agreement and Area Development Agreement.
Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J prohibits us from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial or requiring the Area Developer or Franchisee to consent to liquidated damages, termination penalties or judgment notes. In addition, nothing in the Disclosure Document, Area Development Agreement or Franchise Agreement can abrogate or reduce any of Area Developer's or Franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or Area Developer's or Franchisee's rights to any procedure, forum or remedies provided for by the laws of the jurisdiction.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Minnesota law requires Cream to provide specific notice periods for termination and non-renewal of franchise agreements. For non-renewal of the Franchise Agreement and Area Development Agreement, Cream must provide a minimum of 180 days' notice, except in certain specified cases.
This requirement is based on Minn. Stat. Sec. 80C.14, Subds. 3, 4, and 5. In addition to the notice period for non-renewal, Minnesota law also mandates that Cream provide 90 days' notice of termination, with a 60-day period to cure any violations, before the Franchise Agreement and Area Development Agreement can be terminated.
Furthermore, the FDD states that Minnesota law, specifically Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J, prevents Cream from requiring franchisees to conduct litigation outside of Minnesota, waive their right to a jury trial, or consent to liquidated damages, termination penalties, or judgment notes. The Disclosure Document, Area Development Agreement, and Franchise Agreement cannot override or diminish any rights granted to the Area Developer or Franchisee under Minnesota Statutes, Chapter 80C, or their rights to any procedure, forum, or remedies provided by Minnesota law.