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Minnesota Franchise Law

The franchise business model is alive and well. As a result of the current economic situation, many individuals are looking for alternate means of employment. For some, this means the traditional job search with an ever increasing pool mccann grey home jersey of candidates. For others, current economics may be a signal to try something new ? the dream of owning their own business. At its very essence, a franchise business model provides a framework in which to operate the business and accelerate the "start-up" time and capital that may be needed to start from "scratch". Specific legal standards identify what constitutes a franchise mccann grey home jersey rather than a business opportunity.

The Minnesota Franchise Act focuses on three (3) indicia as to whether a mccann grey home jersey franchise relationship exists. These indicia determine whether a business owner offering the sale of a business must follow certain regulatory steps in disclosing matters about it business before it is sold to a potential operator. These indicia are: (1) a right granted by the franchisor to the franchisee to engage in business using the franchisor's trademarks, trade name or trade dress; (2) a community of interest in the marketing of goods or service between the franchisee and the franchisor; and (3) a franchise fee paid by the franchisee to the franchisor.

The Right to Use Franchisor's Marks

Under franchise relationships, the franchisor grants to the franchisee a right to use certain trademark and service marks associated with the business. Often, this comes in a format logo, font or color scheme that identifies a franchise business. Notable examples would be fast food franchises such as the Colonel of Kentucky Fried Chicken?, or the Golden Arches of McDonald's?. Without the grant of the rights to use these marks, any business operator using them would be in violation of trademark law on a state and federal level.