Can Eos Worldwide unreasonably withhold consent to the transfer of a franchise in Minnesota?
Eos_Worldwide 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) (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 22 — CONTRACTS (FDD page 74)
What This Means (2025 FDD)
According to the 2025 FDD, Eos Worldwide must comply with Minnesota Statutes regarding franchise transfers. Specifically, for franchises governed by Minnesota law, Eos Worldwide's consent to the transfer of a franchise cannot be unreasonably withheld, except in certain specified cases. This is detailed in Item 17 of the Disclosure Document and further emphasized in the addendum for Minnesota franchisees.
This provision protects Minnesota franchisees from Eos Worldwide arbitrarily denying a transfer request. However, the FDD does not define what constitutes "unreasonably withheld" consent or specify the "certain specified cases" where this requirement may not apply. These details would likely be outlined in the franchise agreement itself or determined by Minnesota law.
Prospective franchisees in Minnesota should carefully review the franchise agreement and consult with a legal professional to understand their rights and obligations regarding franchise transfers. They should also seek clarification from Eos Worldwide about the specific conditions under which a transfer request might be denied to fully understand the potential limitations on their ability to sell their franchise.