What are the conditions under which Spray Net will not unreasonably withhold consent for a franchisee's relocation?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
With respect to franchises governed by Minnesota law, we will comply with Minnesota Statute 80C.14 Subd. 3-5, which require (except in certain specified cases) that (1) 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 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, specifically within the Minnesota Addendum, there are stipulations regarding the transfer of a franchise. For franchises governed by Minnesota law, Spray Net will comply with Minnesota Statute 80C.14 Subd. 3-5, which mandates that consent to the transfer of the franchise will not be unreasonably withheld.
This provision is beneficial for prospective Spray Net franchisees in Minnesota, as it ensures that Spray Net cannot arbitrarily prevent the sale or transfer of their franchise to a qualified buyer. This protection is particularly important because the ability to sell a franchise is a key component of its overall value and a franchisee's exit strategy.
It is important to note that this condition applies specifically to franchises governed by Minnesota law. Franchisees in other states may not have the same protection against the franchisor unreasonably withholding consent for a transfer. Prospective franchisees should consult the specific addenda and legal provisions applicable to their state to understand their rights regarding franchise transfers.