In Minnesota, can Spray Net unreasonably withhold consent to the transfer of a 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, the Minnesota Addendum specifies that Spray Net's consent to the transfer of a franchise cannot be unreasonably withheld. This is in accordance with Minnesota Statute 80C.14 Subd. 3-5. This statute aims to protect franchisees by ensuring they have the ability to transfer their franchise to a qualified buyer without facing arbitrary denial from the franchisor.
This provision is beneficial for prospective Spray Net franchisees in Minnesota as it provides an added layer of security and flexibility. If a franchisee decides to sell their business, retire, or pursue other opportunities, Spray Net is legally obligated to consider the transfer request reasonably. This prevents Spray Net from blocking a transfer based on unfair or unsubstantiated reasons, which could negatively impact the franchisee's investment and exit strategy.
It is important for a potential Spray Net franchisee to understand what constitutes "unreasonable" withholding of consent. While the FDD states that consent cannot be unreasonably withheld, it does not define the specific conditions under which consent may be reasonably withheld. A prospective franchisee should seek clarification from Spray Net regarding the criteria and process for evaluating transfer requests to fully understand their rights and obligations.