In Minnesota, a franchise is a popular way of starting or growing a business. Franchises include product and service companies. Special laws have been created to protect business owners buying into a franchise.

Minnesota Franchise Laws

Many states, such as Minnesota, have strict franchise laws. Minnesota has enacted a franchise statute called the Minnesota Franchise Act. Among other things, this statute requires franchisors to register in Minnesota. This franchise registration requirement is similar to such requirements in California, Hawaii, Illinois, New York, and Rhode Island.

Watch Out for These Franchisor Tactics

Like any industry, some people are unscrupulous. Be cautious if a franchisor tries these approaches with you.

  • The franchisor says that he won’t hold you to the franchise agreement that he wants you to sign.
  • The franchisor says you don’t need to have an attorney analyze the franchise agreement.
  • The franchisor doesn’t want you to talk with other franchisees.

When Should I Hire a Minnesota Franchise Lawyer?

In short, if you are planning to enter into a franchise agreement in Minnesota, you should hire a Minnesota franchise attorney.

Most importantly, a Minnesota franchise lawyer will analyze the franchise agreement, explain its provisions to you, and suggest areas to be changed before you sign the agreement.

A Minnesota attorney can help someone contemplating a franchise in a number of other ways:

  • A Minnesota franchise lawyer provides legal guidance and advice on whether to franchise or pursue other means of distribution and growth.
  • A Minnesota franchise lawyer provides legal guidance and insight on growing your franchise or distribution systems domestically and internationally, and wherever opportunity may be present.
  • A Minnesota franchise lawyer provides legal counsel on multi-unit ownership and co-branding of the franchise.
  • A Minnesota franchise lawyer provides a variety of transactional, litigation, and alternative dispute resolution services of the franchise.
  • A Minnesota franchise lawyer provides representation of area developers and representatives, sub-franchisors, multi-unit and single-unit franchisees, licensees, dealers, distributors, and independent franchisee associations in transactional, litigation and dispute resolution matters.

Other Minnesota Franchise Attorney Services

A Minnesota franchise attorney provides advice and representation regarding a number of franchise law matters:

  • Evaluating a franchise agreement
  • Cure periods
  • Indemnification
  • Minnesota Franchise Act
  • Arbitration vs. litigation
  • Equitable remedies
  • Accidental franchises
  • Illegal franchise agreement provisions
  • Franchisor’s failure to register the franchise
  • Terminating a franchise agreement
  • Negotiating a franchise contract provision
  • Franchise ownership disputes (fights among owners)
  • Buying or selling a franchise

The content of this post has been copied from the Federal Trade Commission’s Franchise Rule 16 C.F.R. Part 436 Compliance Guide