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SF 2100

as introduced - 90th Legislature (2017 - 2018) Posted on 03/15/2017 08:34am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to commerce; regulating franchise agreement terms; amending Minnesota
Statutes 2016, section 80C.14, subdivision 2, by adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2016, section 80C.14, subdivision 2, is amended to read:


Subd. 2.

Acts constituting.

All franchise contracts or agreements, other than those
classifications of franchises specifically recognized by the commissioner under subdivision
1, and any other device or practice of a franchisor must conform to subdivisions 3 deleted text begin anddeleted text end new text begin ,new text end 4new text begin ,
and 4a
new text end . It is an unfair and inequitable practice for a person to commit an act specified in
subdivisions 3 to 5.

Sec. 2.

Minnesota Statutes 2016, section 80C.14, is amended by adding a subdivision to
read:


new text begin Subd. 4a. new text end

new text begin Franchise agreement terms. new text end

new text begin (a) The following must be included in every
franchise agreement or contract:
new text end

new text begin (1) all terms related to payments or fees, including franchise fees, that the franchisee or
subfranchisor is required to pay to the franchisor, including royalties and payments or fees
which the franchisor collects in whole or in part on behalf of a third party; and
new text end

new text begin (2) all formulas and calculations used to determine the terms described in clause (1).
new text end

new text begin (b) No franchise agreement or contract may include a provision that allows the franchisor
to unilaterally change the terms of the franchise agreement or contract, unless the franchisor
is required to do so by state or federal law.
new text end

Sec. 3. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 and 2 are effective June 1, 2017, and apply to franchise agreements and
contracts offered, amended, or executed on or after that date.
new text end