In Minnesota, what is the minimum notice Southern Steer must provide to a franchisee before non-renewal of the Franchise Agreement?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Disclosure Document and Franchise Agreement are amended to state that we will comply with Minnesota Statute 80C.14 subdivisions 3, 4 and 5, which require except in certain specific cases, that you be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal of the Franchise Agreement.
The Franchise Disclosure Document and Franchise Agreement are amended to comply with Minnesota Rules, Department of Commerce, Chapter 2860, Section 4400D, which prohibits a company from requiring a Franchisee to assent to a release, assignment, novation or waiver that would relieve any person from liability imposed by Minnesota Statutes section 80C.01 to 80C.22; provided, that this part shall not bar the voluntary settlement of disputes.
Source: Item 5 — and 7 of the FDD, Section 3.1 of the Franchise Agreement and Section 4.1 of the Multi-Unit Development Agreement are hereby amended to state that payment of the initial franchise fee and development fee will be deferred until We have satisfied Our pre-opening obligations, and You have commenced business operations. (FDD pages 168–290)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, Minnesota Statute 80C.14 subdivisions 3, 4 and 5, requires that Southern Steer provide a franchisee with 180 days' notice for non-renewal of the Franchise Agreement. There are certain specific cases where this may not apply, but the document does not elaborate on what those cases are.
In addition to the notice for non-renewal, Minnesota law requires that Southern Steer provide 90 days' notice of termination, with 60 days to cure, except in certain specific cases. The FDD also states that it will comply with Minnesota Rules, Department of Commerce, Chapter 2860, Section 4400D, which prohibits Southern Steer from requiring a Franchisee to assent to a release, assignment, novation or waiver that would relieve any person from liability imposed by Minnesota Statutes section 80C.01 to 80C.22; provided, that this part shall not bar the voluntary settlement of disputes.
Prospective franchisees in Minnesota should be aware of these state-specific protections regarding termination and non-renewal. It is important to understand the conditions under which these protections apply and to consult with a legal professional to fully understand their rights under Minnesota law.