factual

What is the required notice period for termination of a Fitstop franchise under Minnesota Statute § 80C.14, subdivisions 3, 4, and 5?

Fitstop Franchise · 2024 FDD

Answer from 2024 FDD Document

Item 17 of the Disclosure Document is supplemented by the following:

    1. With respect to franchises governed by Minnesota law, we will comply with Minnesota Statute § 80C.14, subdivisions 3, 4, and 5 which requires (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 50–135)

What This Means (2024 FDD)

According to Fitstop's 2024 Franchise Disclosure Document, Minnesota Statute § 80C.14, subdivisions 3, 4, and 5, requires that Fitstop provide a franchisee with 90 days' notice of termination, with 60 days to cure the issue, except in certain specified cases. The statute also requires Fitstop to provide 180 days' notice for non-renewal of the Franchise Agreement. Additionally, consent to the transfer of the franchise will not be unreasonably withheld.

This means that if Fitstop decides to terminate a franchise agreement in Minnesota (outside of specific exceptions), they must give the franchisee written notice at least 90 days in advance. This provides the franchisee with an opportunity to address the issues that led to the termination notice and potentially avoid termination. The franchisee has 60 days to cure the issues.

For non-renewal, Fitstop must provide 180 days' notice, giving the franchisee ample time to prepare for the end of the franchise term. The FDD also states that Fitstop must not unreasonably withhold consent for a franchisee to transfer their franchise to another party. This protects the franchisee's ability to sell their business, subject to Fitstop's reasonable approval.

It is important for prospective Fitstop franchisees in Minnesota to understand these protections under Minnesota law, as they provide specific rights and recourse in the event of termination or non-renewal of their franchise agreement.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.