In Minnesota, can Extreme Art Studio unreasonably withhold consent to the transfer of a franchise?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
With respect to Franchises governed by Minnesota law, we will comply with Minnesota Statute Section 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 non-renewal of the Franchise Agreement; and that consent to the transfer of the Franchise will not be unreasonably withheld.
Source: Item 23 — RECEIPTS (FDD pages 49–214)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, if a franchise is governed by Minnesota law, Extreme Art Studio must comply with Minnesota Statute Section 80C.14, Subds. 3, 4 and 5. This statute dictates that, except in specific cases, franchisees must be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal of the Franchise Agreement.
Furthermore, the statute explicitly states that consent to the transfer of an Extreme Art Studio franchise will not be unreasonably withheld. This provision is designed to protect franchisees in Minnesota from arbitrary denials of franchise transfer requests.
This means that Extreme Art Studio cannot deny a transfer request without a legitimate, justifiable reason. If a franchisee believes that consent has been unreasonably withheld, they may have legal recourse under Minnesota law.