In Minnesota, can Creative World School unreasonably withhold consent to transfer of the franchise?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
Item 17, summary column for (f) is amended to add the following:
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) and 180 days' notice for nonrenewal of the Franchise Agreement and that consent to transfer of the franchise will not be unreasonably withheld..
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School Franchise Disclosure Document, for franchises governed by Minnesota law, Creative World School's consent to the transfer of a franchise will not be unreasonably withheld. This is in accordance with Minn. Stat. Sec. 80C.14, subds. 3, 4 and 5.
This provision protects franchisees in Minnesota by ensuring that Creative World School cannot arbitrarily deny a transfer request. This provides more flexibility for the franchisee to sell their business if they choose to do so.
It is important for prospective franchisees in Minnesota to understand this protection, as it can significantly impact their ability to exit the franchise system. Franchisees should consult with a legal professional to fully understand their rights under Minnesota law.