In Minnesota, can Dryject unreasonably withhold consent to transfer of the franchise?
Dryject 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.
- Item 17, summary column for (m) is amended to add the following:
Any release signed as a condition of transfer will not apply to any claims you may have under the Minnesota Franchise Act.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject Franchise Disclosure Document, for franchises governed by Minnesota law, Dryject must comply with Minn. Stat. Sec. 80C.14, subds. 3, 4 and 5. This statute generally requires that Dryject cannot unreasonably withhold consent to the transfer of a franchise. This provision aims to protect franchisees in Minnesota from arbitrary denials of transfer requests.
This protection is significant for prospective Dryject franchisees in Minnesota because it ensures that they have the right to transfer their franchise to a qualified buyer without facing unreasonable obstacles from Dryject. This can be particularly important if a franchisee needs to sell the business due to personal circumstances or wishes to retire. The FDD also states that any release signed as a condition of transfer will not apply to any claims franchisees may have under the Minnesota Franchise Act.
However, it is important to note that the statute includes exceptions, meaning that in certain specified cases, Dryject may be able to withhold consent. While the FDD excerpt does not detail these specific cases, prospective franchisees should seek clarification from Dryject regarding the circumstances under which a transfer could be denied. Understanding these exceptions is crucial for assessing the potential risks and limitations associated with transferring a Dryject franchise in Minnesota.