Minnesota Franchise Law
Based in Minneapolis, Garner, Ginsburg & Johnsen, P.A. is one of the leading Minnesota franchise law firms, as well as one of the nation’s most sought-after team of franchise lawyers. For more than 30 years, our team of attorneys has been helping franchisees take back control of their businesses. We understand that when you are fighting for your franchise, you are fighting for your livelihood. From calling out franchisors on fraud and misrepresentation to standing up for franchisees suffering from a territory takeover, we work to help our clients establish and grow successful businesses.
In addition to our Minneapolis location, Garner, Ginsburg & Johnsen, P.A. also has offices in Colorado, and New York so that we can better serve franchisees nationwide. If you’d like to learn more about how we can help you with your unique situation, contact our experienced franchise attorneys in Minnesota to set up a free, no-obligation consultation.
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My Situation Isn’t What I Expected
Breach of Contract
The franchisor ensured me that my team would get personalized training, but all we got were overly technical handbooks. What if that’s not enough?
Fraud
The franchisor told me that this was a proprietary product unlike anything on the market, but I saw something very similar in the store. Is this fraud?
Violation of Franchise Statutes
I was promised I’d make at least $100,000 in profits in the first six months of business, but I’m not even close to that. Am I doing something wrong?
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Franchise Disclosure and Protection Laws in Minnesota
Minnesota is one of the leading states in protecting franchisees’ rights. It requires franchisors to register their Franchise Disclosure Documents with the state before they can sell to franchisees; it provides franchisees with rights to sue their franchisors for fraud or misleading conduct in connection with the sale of the franchise; and it protects franchisees against termination or renewal without good cause.
Minnesota also has a host of pro-franchisee regulations that protect franchisees against additional overreaching by franchisors. One provision, for example, makes it unlawful for the franchisor to collect liquidated damages from a franchisee. Another provision protects the right of Minnesota franchisees to sue in Minnesota – not in the state where the franchisor is located.
The State of Minnesota also has a website where you can research the franchise filings of franchisors.
Minnesota Law Working Against Franchisees
As progressive as Minnesota laws are in protecting franchisees, there are instances where laws fall short. Sometimes Minnesota franchisees seek out our franchise law services because their franchisor declares bankruptcy. Chapter 7 and Chapter 11 bankruptcy cases are concerning because franchise agreements rarely include language that protects franchisees in this scenario.
When franchisors file for bankruptcy, the court automatically imposes a stay of all actions against the franchisor which prevents franchisees from taking legal action against them. Franchisees, however, are still obligated to honor their agreement. This means a Minnesota franchisee must continue operations to their best of their ability while their franchisor ceases support, marketing, and other services. With an experienced team of franchise attorneys, you can stay informed during the proceedings and get counsel that will represent and protect your legal interests.
Garner, Ginsburg & Johnsen, P.A. has had a hand in making and keeping Minnesota’s franchise laws as friendly to franchisees as they can be, and regularly appears in Minnesota courts to fight for franchisee rights. If you are a Minnesota franchisee or a franchisee of a Minnesota franchisor, contact our franchise lawyers to maximize your protection!