factual

Under Minnesota law, what is the required notice period Hardees must provide to a franchisee for termination (including the cure period) and non-renewal of the franchise agreement, except in certain specified cases?

Hardees Franchise · 2025 FDD

Answer from 2025 FDD Document

5. The following sentence is added to the end of Section 2.B.:

With respect to franchises governed by Minnesota law, HR will comply with Minnesota Statute § 80C.14, Subdivision 3, 4, and 5 which requires, except in certain cases, that a franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal of franchise agreements.

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 71–84)

What This Means (2025 FDD)

According to Hardees's 2025 Franchise Disclosure Document, Minnesota law requires specific notice periods for termination and non-renewal of franchise agreements. Except in certain specified cases, Hardees must provide a franchisee with 90 days' notice of termination, which includes a 60-day period to cure any defaults. For non-renewal of the franchise agreement, Hardees is required to give the franchisee 180 days' notice. These regulations are in place to protect franchisees by providing them adequate time to address any issues leading to termination or to prepare for the end of their franchise term.

These stipulations are important for prospective Hardees franchisees in Minnesota as they provide a legal framework for fair treatment and sufficient notice in the event of termination or non-renewal. The 90-day notice for termination allows franchisees the opportunity to rectify any breaches of the agreement, potentially saving their franchise. The 180-day notice for non-renewal gives franchisees ample time to plan their next steps, whether that involves selling the franchise, negotiating a new agreement, or exiting the Hardees system.

It is important to note that these notice requirements are subject to certain exceptions, which are not detailed in this excerpt. A prospective franchisee should seek clarification from Hardees regarding what these 'certain specified cases' entail to fully understand their rights and obligations under Minnesota law. Understanding these exceptions is crucial for assessing the potential risks and benefits of investing in a Hardees franchise in Minnesota.

Disclaimer: This information is extracted from the 2025 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.