Minnesota § 181.991 - RESTRICTIVE FRANCHISE AGREEMENTS PROHIBITED
Full text of Minnesota Minnesota Statutes § 181.991 — RESTRICTIVE FRANCHISE AGREEMENTS PROHIBITED, with citation guidance and answers to common questions.
§ 181.991. RESTRICTIVE FRANCHISE AGREEMENTS PROHIBITED
Subdivision 1.Definitions.
(a) For purposes of this section, the following terms have the meanings given them.
(b) "Employee" means an individual employed by an employer and includes independent contractors.
(c) "Employer" has the meaning given in section 177.23, subdivision 6.
(d) "Franchise," "franchisee," and "franchisor" have the meanings given in section 80C.01, subdivisions 4 to 6.
Subd. 2.Prohibition on restrictive franchise agreements.
(a) No franchisor may restrict, restrain, or prohibit in any way a franchisee from soliciting or hiring an employee of a franchisee of the same franchisor.
(b) No franchisor may restrict, restrain, or prohibit in any way a franchisee from soliciting or hiring an employee of the franchisor.
(c) Any provision of an existing contract that violates paragraph (a) or (b) is void and unenforceable. When a provision in an existing contract violates this section, the franchisee must provide notice to their employees of this law.
Subd. 3.Franchise agreement amendment.
Notwithstanding any law to the contrary, no later than May 24, 2024, franchisors shall:
(1) amend existing franchise agreements to remove any restrictive employment provision that violates subdivision 2; or
(2) sign a memorandum of understanding with each franchisee that provides that any contract provisions that violate subdivision 2 in any way are void and unenforceable, and provides notice to the franchisee of their rights and obligations under this section.
History:
Official Publication of the State of Minnesota
Revisor of Statutes
Source: official Minnesota text · Last verified 2026-08-27
Frequently Asked Questions About Minnesota § 181.991
What does Minnesota Statutes § 181.991 cover?
Section 181.991 ("RESTRICTIVE FRANCHISE AGREEMENTS PROHIBITED") is part of the Minnesota Statutes, the codified statutory law of Minnesota. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Minnesota § 181.991?
A common citation format is "Minnesota Statutes § 181.991" (Minnesota). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Minnesota law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Minnesota official source linked on this page or consult a licensed Minnesota attorney.
How does Minnesota § 181.991 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Minnesota can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Minnesota.