What constitutes 'good cause' for Afuri Ramen Dumpling to terminate a franchise agreement in Michigan?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
The State of Michigan prohibits certain unfair provisions that are sometimes in franchise documents. If any of the following provisions are included in these franchise documents, the provisions are void for Michigan franchisees and cannot be enforced against Michigan franchisees. These provisions are:
- (c) A provision that permits a franchisor to terminate a franchise prior to the expiration of its term except for good cause.
Good cause will include the failure of the franchisee to comply with any lawful provision of the Franchise Agreement and to cure the failure after being given written notice and a reasonable opportunity, which in no event need be more than 30 days, to cure the failure.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, Michigan franchisees have specific protections under Michigan franchise investment law. One such protection is that Afuri Ramen Dumpling can only terminate a franchise agreement before its expiration if there is 'good cause.'
For an Afuri Ramen Dumpling franchise in Michigan, 'good cause' includes the franchisee's failure to comply with any lawful provision of the Franchise Agreement. However, Afuri Ramen Dumpling must provide the franchisee with written notice of the failure and a reasonable opportunity to correct it.
The opportunity to cure the failure need not be more than 30 days. This means that if a franchisee violates a term of the agreement, Afuri Ramen Dumpling must give them written notice and at least some time (up to 30 days) to fix the problem before terminating the agreement. This provision ensures that franchisees in Michigan have a chance to rectify any issues before facing termination, offering a degree of protection against potentially abrupt or unfair terminations.