For Dryject franchises governed by Minnesota law, can consent to transfer of the franchise be unreasonably withheld?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
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 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, for franchises governed by Minnesota law, Dryject will comply with Minn. Stat. Sec. 80C.14, subds. 3, 4 and 5. This statute requires that consent to transfer of the franchise will not be unreasonably withheld. This provision is designed to protect franchisees in Minnesota from arbitrary denials of transfer requests.
This means that Dryject cannot deny a transfer request without a legitimate, justifiable reason. The reasons for denying a transfer must be reasonable and based on objective criteria. This provides a level of security for franchisees who may wish to sell their business in the future.
However, Dryject does outline conditions under which a transfer may be denied. These include if the franchisee is in default, if the proposed transferee doesn't meet Dryject's requirements for new franchisees, or if the transferee operates a similar business. While Dryject must act reasonably, franchisees should still be prepared to meet certain conditions and provide necessary information about potential transferees.