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80C.01.9

Statute ID: 5287

Statute Function ID: 20422

Franchises-Definitions-Franchise Fee

In Effect

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Details are only available for Penalty and Charging Statutes.

Statute Number:

80C.01.9

Enactment Date:

Jan 1, 1859

Effective Date:

Jan 1, 1859

Expiration Date:

Repealed?:

Summary Text:

Franchises-Definitions-Franchise Fee

Statute ID:

5287

Created:

Sep 1, 2006 by mnjis.legal.analyst@state.mn.us

Updated:

Sep 1, 2006 by mnjis.legal.analyst@state.mn.us

Last Update Action:

System

Legal Analyst Comment:

Summary Text:

Franchises-Definitions-Franchise Fee

Link to MN Statute Text:

https://www.revisor.leg.state.mn.us/stats/80C/01.html

Legislative Session:

0 - NA

Session Law Text?:

Statute text last updated on:

Sep 1, 2006

"Franchise fee" means any fee or charge that a franchisee or subfranchisor is required to pay or agrees to pay for the right to enter into a business or to continue a business under a franchise agreement, including, but not limited to, the payment either in lump sum or by installments of an initial capital investment fee, any fee or charges based upon a percentage of gross or net sales whether or not referred to as royalty fees, any payment for goods or services, or any training fees or training school fees or charges; provided, however, that the following shall not be considered the payment of a franchise fee:
(a) the purchase of goods or agreement to purchase goods at a bona fide wholesale price;
(b) the purchase of goods or agreement to purchase goods on consignment, if the proceeds remitted by the franchisee from any such sale shall reflect only the bona fide wholesale price of such goods;
(c) the repayment by the franchisee of a bona fide loan made to the franchisee from the franchisor;
(d) the purchase of goods or agreement to purchase goods at a bona fide retail price subject to a bona fide commission or compensation plan that in substance reflects only a bona fide wholesale transaction;
(e) the purchase, at their fair market value, of supplies or fixtures or agreement to so purchase supplies or fixtures necessary to enter into the business or to continue the business under the franchise agreement;
(f) the purchase or lease, at the fair market value, of real property or agreement to so purchase or lease real property necessary to enter into the business or to continue the business under the franchise agreement.