What Are The Franchise Laws For Minnesota?
Franchise law in Minnesota is governed by the Minnesota Franchise Act (MFA), a comprehensive statute that provides some of the strongest protections for franchisees in the country.
Note: The state of Minnesota is headquarters to numerous franchise organizations. Like this well-known beauty franchise.
As a “registration state,” Minnesota requires franchisors to register their franchise offerings with the Minnesota Department of Commerce before they can legally offer or sell a franchise. This process involves submitting the Franchise Disclosure Document (FDD) for state review to ensure it complies with the law and provides adequate information to prospective buyers.
The MFA is also known for its broad definition of a “franchise,” which can sometimes pull in business relationships that might not be considered franchises in other states, extending its protections to a wider range of business owners.
The MFA places significant restrictions on a franchisor’s ability to end the franchise relationship.
For example, A franchisor cannot terminate or fail to renew a franchise agreement without “good cause,” which is defined within the statute.
Furthermore, the law mandates a specific process for termination, requiring the franchisor to provide the franchisee with 90 days’ written notice and 60 days to cure the alleged default. For non-renewal, the franchisor must provide 180 days’ notice. These provisions prevent arbitrary contract terminations and give franchisees a meaningful opportunity to address any issues and preserve their business.
To ensure compliance, the Minnesota Franchise Act provides robust enforcement mechanisms. Franchisees who have been harmed by a violation of the Act have a private right of action, allowing them to sue the franchisor for damages, rescission of the agreement, and even attorney’s fees. This creates a powerful incentive for franchisors to follow the law.
In addition to private lawsuits, the Minnesota Department of Commerce has the authority to investigate potential violations, issue stop orders to halt illegal franchise sales, and pursue civil penalties, adding a layer of public oversight and enforcement to protect the state’s franchisees.
Here is a list of franchise lawyers you can hire in Minnesota
J. Michael Dady / Dady & Gardner, P.A.
5100 IDS Center, 80 South 8th Street
Minneapolis, Minnesota
Michael D. Madigan / Madigan, Dahl & Harlan, P.A.
701 Fourth Avenue South, Suite 1700
Minneapolis, Minnesota
Dennis L. Monroe / Monroe Moxness Berg PA
7760 France Avenue South, Suite 700
Bloomington, Minnesota
Charles S. Modell / Larkin Hoffman
8300 Norman Center Drive, Suite 1000
Minneapolis, Minnesota
D. Clay Taylor / The Law Office of D. Clay Taylor
333 Washington Ave. N., Suite 300
Minneapolis, Minnesota
