What is the minimum notice period Desi District must provide a franchisee in Minnesota for non-renewal of 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, the Minnesota Addendum specifies the notice periods for termination and non-renewal of a franchise agreement. For franchises governed by Minnesota law, Desi District is required to provide a franchisee with 180 days' notice for non-renewal of the franchise agreement.
This requirement is in accordance with Minnesota Statutes, Section 80C.14, Subd. 3-5. In addition to the 180-day notice for non-renewal, the statute also mandates that franchisees be given 90 days' notice of termination, with 60 days to cure the issue leading to termination, except in certain specified cases.
This provision ensures that Desi District franchisees in Minnesota have adequate time to prepare for the end of their franchise term, whether through seeking renewal, selling the business, or making other arrangements. It also aligns with the state's franchise laws aimed at protecting franchisees' rights and providing a fair business environment.