What cure period is a Sonesta Select Sonesta Essential franchisee entitled to before termination in Minnesota?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
- Renewal, Termination, Transfer and Dispute Resolution. The following is added to the end of the chart in Item 17:
With respect to franchises governed by Minnesota law, we will comply with Minnesota Statutes, Section 80C.14, Subs. 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) of the Franchise Agreement and 180 days' notice for non-renewal of the Franchise Agreement.
Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J prohibit us from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring you to consent to liquidated damages, termination penalties or judgment notes. In addition, nothing in the Franchise Disclosure Document or Franchise Agreement can abrogate or reduce any of your rights as provided for in Minnesota Statutes 1984, Chapter 80C, or your rights to any procedure, forum or remedies provided for by the laws of the jurisdiction. Those provisions also provide that no condition, stipulations or provision in the Franchise Agreement will in any way abrogate or reduce any of your rights under the Minnesota Franchises Law, including, if applicable, the right to submit matters to the jurisdiction of the courts of Minnesota.
Source: Item 23 — RECEIPTS (FDD pages 84–261)
What This Means (2025 FDD)
According to the 2025 Sonesta Select Sonesta Essential FDD, Minnesota franchisees are generally entitled to a 60-day cure period if Sonesta Select Sonesta Essential seeks to terminate the franchise agreement. This is due to Minnesota Statute Section 80C.14, Subds. 3, 4 and 5, which requires that franchisees in Minnesota be given 90 days' notice of termination, with 60 days to cure the issue, before the franchise agreement can be terminated. There are certain specified cases where this does not apply, but the FDD does not elaborate on what those specific cases are.
This protection is more generous than in many other states, where cure periods may be shorter or non-existent. The 90-day notice and 60-day cure period allows a Sonesta Select Sonesta Essential franchisee time to address any issues that could lead to termination, potentially saving their business. This also applies to non-renewal of the franchise agreement, where Minnesota franchisees are entitled to 180 days' notice of non-renewal.
Additionally, the FDD specifies that certain provisions within the franchise agreement that might conflict with Minnesota law will not be enforced in Minnesota. Specifically, Minnesota Statutes 80C.21 and Minnesota Rule 2860.4400J, which prohibit Sonesta Select Sonesta Essential from requiring litigation to be conducted outside of Minnesota, requiring waiver of a jury trial, or requiring consent to liquidated damages, termination penalties, or judgment notes. The Franchise Disclosure Document and Franchise Agreement cannot reduce any rights provided for in Minnesota Statutes 1984, Chapter 80C.