In Minnesota, what constitutes an unreasonable withholding of consent to transfer a Spray Net franchise?
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, Minnesota Statute 80C.14 Subd. 3-5 states that consent to the transfer of a franchise will not be unreasonably withheld. However, the FDD does not define what specifically constitutes an 'unreasonable withholding of consent'.
This means that while Spray Net must allow franchise transfers, they can still set reasonable conditions. What constitutes 'unreasonable' is subject to interpretation under Minnesota law. A prospective Spray Net franchisee should be aware that disputes over transfer consent could potentially lead to legal challenges, the outcomes of which would depend on specific circumstances and judicial interpretation.
To gain clarity, a potential franchisee should ask Spray Net for specific examples of conditions that would cause them to withhold consent to a transfer. Understanding these conditions beforehand can help a franchisee avoid potential conflicts and make informed decisions about the future sale of their Spray Net franchise.