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Minnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

  

                         Laws of Minnesota 1984 

                        CHAPTER 596-H.F.No. 2141 
           An act relating to commerce; modifying the definition 
          of "franchise" for purposes of franchise regulation; 
          amending Minnesota Statutes 1982, section 80C.01, 
          subdivision 4. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1982, section 80C.01, 
subdivision 4, is amended to read: 
    Subd. 4.  "Franchise" means (a) a contract or agreement, 
either express or implied, whether oral or written, for a 
definite or indefinite period, between two or more persons: 
     (1) by which a franchisee is granted the right to engage in 
the business of offering or distributing goods or services using 
the franchisor's trade name, trademark, service mark, logotype, 
advertising, or other commercial symbol or related 
characteristics; 
     (2) in which the franchisor and franchisee have a community 
of interest in the marketing of goods or services at wholesale, 
retail, by lease, agreement, or otherwise; and 
     (3) for which the franchisee pays, directly or indirectly, 
a franchise fee; or 
     (b) a contract, lease, or other agreement, either express 
or implied, whether oral or written, for a definite or 
indefinite period, between two or more persons, whereby the 
franchisee is granted the right to market motor vehicle fuel; or 
     (c) the sale or lease of any products, equipment, chattels, 
supplies, or services to the purchaser, other than the sale of 
sales demonstration equipment, materials or samples for a total 
price of $500 or less to any one person, for the purpose of 
enabling the purchaser to start a business and in which the 
seller:  
     (1) Represents that the seller, lessor, or an affiliate 
thereof will provide locations or assist the purchaser in 
finding locations for the use or operation of vending machines, 
racks, display cases, or similar devices, or currency operated 
amusement machines or devices, on premises neither owned or 
leased by the purchaser or seller; or 
    (2) Represents that the seller will purchase any or all 
products made, produced, fabricated, grown, bred, or modified by 
the purchaser using, in whole or in part, the supplies, 
services, or chattels sold to the purchaser; or 
    (3) Guarantees that the purchaser will derive income from 
the business which exceeds the price paid to the seller.  
    (d) "Franchise" does not include any business which is 
operated under a lease or license on the premises of the lessor 
or licensor as long as such business is incidental to the 
business conducted by the lessor or licensor on such premises, 
including, without limitation, leased departments, licensed 
departments, and concessions. 
    (e) "Franchise" does not include any contract, lease or 
other agreement whereby the franchisee is required to pay less 
than $100 on an annual basis, except those franchises identified 
in paragraph (b). 
    (f) "Franchise" does not include a contract, lease or other 
agreement between a new motor vehicle manufacturer, distributor, 
or factory branch and a franchisee whereby the franchisee is 
granted the right to market automobiles, motorcycles, trucks, 
truck tractors, or self-propelled motor homes or campers if the 
foregoing are designed primarily for the transportation of 
persons or property on public highways. 
    Approved April 26, 1984