A technical fix in Minnesota's SF4244 preserves critical protections for small business owners facing franchise buyouts.
Most gym and fitness studio owners don't realize that Minnesota law already protects them if a franchisor tries to buy back their business—and a recent bill just made sure that protection stays in place.
On August 1, 2026, a provision buried in SF4244 (Miscellaneous Technical Corrections to Laws and Statutes) becomes effective. It doesn't create new rights. Instead, it reorganizes an existing clause in Minnesota's franchise law to ensure a critical financial safeguard survives the rewrite: when a franchisor exercises a right of first refusal to purchase your gym or studio, they must pay your reasonable attorney fees and negotiation expenses.
If you own a fitness studio or gym operating under a franchise agreement, your franchisor may have contractual or statutory rights to match any outside offer you receive to sell your business. This is called a "right of first refusal."
When a franchisor exercises that right, you face real costs: legal review of the offer, negotiation with the franchisor, and potentially complex discussions about valuation and terms. Without the attorney fee protection, a small business owner absorbs those costs alone—sometimes thousands of dollars—even though the franchisor is the one triggering the buyout process.
Minnesota law has long required franchisors to cover those costs. The provision in SF4244 simply ensures that requirement doesn't get lost in a technical reorganization of the statute.
The bill renumbers an existing clause within Minnesota Statute § 80E.13, moving what was previously clause (6) to item (vi) within clause (10) of the unfair practices list. The substance of the protection remains identical—but the reorganization ensures it stays enforceable and doesn't accidentally disappear during future legal updates.
This is the kind of technical fix that sounds dry but matters enormously in practice. A misplaced clause can become unenforceable, leaving owners unprotected.
If your gym or fitness studio operates under a franchise agreement with a larger franchisor, this applies to you. It's most relevant if you've ever considered selling your location or if your franchisor has indicated interest in acquiring your business.
The protection covers not just the franchisor's decision to buy, but the full cost of your legal and negotiation work during that process. That's a material financial safeguard for independent owners.
The effective date is August 1, 2026. The provision is found in Article 1, Section 17 of SF4244, which amends Minn. Stat. § 80E.13, on page 28, lines 8-19 of the bill text.
If you operate a franchised gym or studio in Minnesota, it's worth reviewing your franchise agreement now to understand your franchisor's buyback rights and your own protections. This law ensures one of those protections—attorney fee coverage—remains in place.
This explainer reflects the text of SF4244 as enacted. For guidance specific to your franchise agreement, consult a Minnesota business attorney.