For Kidokinetics franchises governed by Minnesota law, how much notice is required for termination of the Franchise Agreement (excluding specified cases)?

According to Kidokinetics's 2024 Franchise Disclosure Document, Minnesota Statute Section 80C.14, Subds. 3, 4, and 5, dictates the notice requirements for franchise termination and non-renewal. For Kidokinetics franchises governed by Minnesota law, franchisees must receive 90 days' notice of termination, along with 60 days to cure any issues, except in certain specified cases. Additionally, franchisees are entitled to 180 days' notice for non-renewal of the Franchise Agreement. Consent to the transfer of the franchise cannot be unreasonably withheld.

This provision ensures that Kidokinetics franchisees in Minnesota have adequate time to address any issues that could lead to termination, or to prepare for the end of their franchise agreement if it is not being renewed. The right to cure within 60 days provides an opportunity for franchisees to rectify any breaches of the agreement, potentially avoiding termination. The longer 180-day notice for non-renewal allows franchisees more time to plan their next steps, whether that involves selling the business, seeking other opportunities, or negotiating a new agreement.

The stipulation that consent to transfer cannot be unreasonably withheld protects the franchisee's investment and provides an exit strategy if they choose to sell their franchise. This is a significant benefit, as it prevents Kidokinetics from arbitrarily blocking a sale, which could negatively impact the franchisee's ability to recoup their investment. These regulations collectively offer Kidokinetics franchisees in Minnesota a degree of protection and fairness in their dealings with the franchisor, aligning with the state's franchise laws.

Prospective Kidokinetics franchisees should be aware of these specific protections afforded to them under Minnesota law, as they supersede any conflicting terms in the standard Franchise Agreement. It is important to understand the circumstances under which these notice periods and transfer rights apply, as there may be 'specified cases' where these protections do not apply. Consulting with a franchise attorney is advisable to fully understand these rights and obligations.