What notice period is Stretch Zone required to provide for termination of a franchise agreement in Minnesota, according to Minnesota Statutes, Section 80C.14, Subd. 3-5?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
- ITEMS 17(c) and (g) are amended by addition of the following language:
With respect to Franchises governed by Minnesota law, the Franchisor will comply with Minnesota Statutes, Section 80C.14, Subd. 3-5, which requires (except in certain specified cases) (1) that 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 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 91–99)
What This Means (2025 FDD)
According to the 2025 Stretch Zone Franchise Disclosure Document, for franchises governed by Minnesota law, Stretch Zone must provide a franchisee with 90 days' notice of termination, along with 60 days to cure the issue, except in certain specified cases. Additionally, Stretch Zone is required to give 180 days' notice for non-renewal of the franchise agreement. Consent to the transfer of the franchise cannot be unreasonably withheld.
This stipulation is included as an amendment to ITEMS 17(c) and (g) of the standard franchise agreement to ensure compliance with Minnesota Statutes, Section 80C.14, Subd. 3-5. This legal protection ensures that Stretch Zone franchisees in Minnesota have adequate time to address any issues that could lead to termination and also protects their rights regarding franchise transfer and renewal.
These regulations provide significant safeguards for franchisees operating in Minnesota, offering them more security and recourse compared to franchisees in states with less stringent regulations. Prospective Stretch Zone franchisees should carefully review these Minnesota-specific amendments to fully understand their rights and obligations under the franchise agreement.