What is the minimum notice period Hyper Kidz franchisees in Minnesota must receive for termination of their franchise agreement (excluding specified cases)?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
This will serve as the State Addendum for the State of Minnesota for Boomerang Franchise LLC's Franchise Disclosure Document and for its Franchise and Multi-Unit Development Agreements.
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- Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J) prohibit the franchisor from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring the franchisee to consent to liquidated damages, termination penalties or judgment notes. In addition, nothing in the Franchise Disclosure Document or agreement(s) can abrogate or reduce (1) any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C or (2) franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
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- With respect to franchises governed by Minnesota law, the franchisor will comply with Minnesota Statutes, Section 80C.14, Subd. 3-5, 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 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 49–52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, Minnesota franchisees are entitled to specific protections under Minnesota law. Specifically, Minnesota Statutes, Section 80C.14, Subd. 3-5, mandates that Hyper Kidz provide a franchisee with 90 days' notice of termination, along with 60 days to cure the issues leading to the potential termination. This requirement does not apply to certain specified cases, which are not detailed in the excerpt.
Additionally, Hyper Kidz must provide 180 days' notice for non-renewal of the franchise agreement in Minnesota. The franchisor also cannot unreasonably withhold consent to the transfer of the franchise. These regulations ensure that Hyper Kidz franchisees in Minnesota have adequate time to address any issues before termination and are protected in matters of franchise transfer and renewal.
This addendum also states that Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J) prohibit Hyper Kidz from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring the franchisee to consent to liquidated damages, termination penalties or judgment notes. Furthermore, the Franchise Disclosure Document or agreements cannot reduce any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or the franchisee's rights to any procedure, forum, or remedies provided by the laws of the jurisdiction.