What is the cure period that Desi District must provide to a franchisee in Minnesota before terminating the franchise agreement?
Desi_District Franchise · 2024 FDDAnswer from 2024 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 52–140)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, Minnesota law requires that, except in certain specified cases, a franchisee must be given 90 days' notice of termination with 60 days to cure. This means that if Desi District intends to terminate a franchise agreement in Minnesota (excluding specific exceptions), they must provide the franchisee with a written notice at least 90 days in advance.
Within this 90-day period, the franchisee has a 60-day window to address and resolve the issues that led to the termination notice. If the franchisee successfully cures the default within these 60 days, Desi District cannot terminate the agreement.
This requirement aims to protect franchisees by giving them a fair opportunity to rectify any breaches of the franchise agreement. It also promotes a more balanced relationship between Desi District and its franchisees, ensuring that termination is a last resort after reasonable attempts at resolution have been made. Prospective franchisees in Minnesota should understand these rights and ensure compliance by Desi District.