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Minnesota Franchisors and Franchisees Cannot Restrict Employees From Jumping Jobs to Other Intra-brand Employers

Sec. 38.  [181.991] RESTRICTIVE FRANCHISE AGREEMENTS PROHIBITED. Subdivision 1. Definitions. (a) For purposes of this section, the following terms havethe meanings given them. (b) “Employee” means an individual employed by an employer and includes independentcontractors. (c) “Employer” has the meaning given in section 177.23, subdivision 6. (d) “Franchise,” “franchisee,” and “franchisor” have the meanings given …

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No franchise business relationship existed to prevent termination of would-be franchisee

When a business relationship is terminated, the terminated business owner will sometimes try to claim a franchise relationship so as to prevent the termination.  Many franchise acts require a putative franchisor to jump through various procedural hoops to terminate a franchisee, such as allowing the putative franchisee an opportunity to cure its alleged defaults.  In …

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