MN HF4801

Exempts franchisors from registration requirements under Minnesota Statutes chapter 80C if they meet specified financial, operational, and background criteria.

Requires franchisor to have shareholder equity of at least $10,000,000 (audited) or $1,000,000 (audited or unaudited) and be 80 percent owned by an entity with $10,000,000 equity if using the lower threshold.

Mandates franchisor or its 80 percent owner maintain at least 25 operating franchises in substantially the same business that have operated for 24 months during the five-year period before offering or sale.

Prohibits franchisor, predecessors, affiliates, and key management personnel from having felony convictions or securities violations within ten years prior to offering or sale.

Requires franchisors to file notice of exemption with $400 fee at least 14 calendar days before franchise sale, submit financial statements and disclosure documents, and renew annually; exemption expires one year after filing and is effective January 1, 2023.