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1. Setting up a Franchise Business --Registering a Franchise in Minnesota

Any person that intends to start a franchise should have an experienced franchise lawyer to help them navigate the myriad of regulations that apply to franchising law. It starts with developing the franchise idea and business model. Without that planning, your franchise may not stand up to regulator scrutiny. Attorneys also are critical when it comes to the franchise registration process.

All Minnesota franchises, including business franchise opportunities, that are offered or sold in Minnesota must either be registered or exempt from registration pursuant to Minn. Stat. 80C.03. In addition, it is important that all applications must comply with the Uniform Franchise Offering Circular (UFOC) Guidelines. This requires that all franchise applications for registration must make specific disclosures in order to meet the "merit review" standards intended to protect consumers from promises that cannot be realized.

For example, Minnesota's Franchise Act prohibits franchisors from making an untrue statement of a material fact or an omission of a material fact. Further, the Commissioner may issue an order denying registration of a franchise if the franchisor's financial condition would affect its ability to fulfill its obligations, or if the sale itself or any term of the contract is unfair or inequitable.

The law governing the Division's regulation of franchises is found in Minn. Stat. Ch. 80C and Minn. Rules Ch. 2860. .

Required Forms to set up a Franchise:

  • UFOC Franchise Registration Application Form
  • Signature Page
  • Sales Agent Disclosure Form
  • Supplemental Information Form
  • Consent to Service of Process
  • A Franchise Impoundment Agreement may be required as a condition of registration.
  • A Franchisor Surety Bond may be required as a condition of registration.

Required Financial Information:

  • Audited financial statements
  • Manually signed accountant's consent

Additional requirements:

  • Offering circular.
  • "Acknowledgement of Receipt" of offering circular.
  • All agreements that the franchisee may be required to sign.
  • Any franchise advertising; do not send videos, send scripts.

For Assistance on your Franchise Issues Call 612-240-8005

Minneapolis and minnesota franchise lawyers and attorneys

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Franchise Law Center
Franchise Home

Minnesota Franchises Explained
An overview of what is necessary to create a franchise

The Franchise Circular - UFOC
Setting up a Minnesota Franchise - The Franchise Circular

Selling a Franchise - Beware Earnings Statements
Setting up a Minnesota Franchise - Selling a Franchise

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