Does the Michigan law affect all Afuri Ramen Dumpling franchise agreements?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
Michigan
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:
(a) A prohibition on the right of a franchisee to join an association of franchisees.
(b) A requirement that a franchisee assent to a release, assignment, novation, waiver, or estoppel which deprives a franchisee of rights and protections provided in the Michigan Franchise investment law.
This will not preclude a franchisee, after entering into a Franchise Agreement, from settling any and all claims.
- (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.
- (d) A provision that permits a franchisor to refuse to renew a franchise without fairly compensating the franchisee by repurchase or other means for the fair market value at the time of expiration of the franchisee's inventory, supplies, equipment, fixtures, and furnishings.
Personalized materials which have no value to the franchisor and inventory, supplies, equipment, fixtures, and furnishings not reasonably required in the conduct of the franchise business are not subject to compensation.
This subsection applies only if:
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, Michigan law includes specific provisions that affect franchise agreements within that state. These provisions address certain unfair practices that are sometimes found in franchise agreements, and they are designed to protect Michigan franchisees.
Specifically, if an Afuri Ramen Dumpling franchise agreement includes any of the provisions listed, those provisions are considered void and unenforceable for Michigan franchisees. These include prohibitions on joining franchisee associations, requirements for franchisees to waive rights under Michigan's franchise investment law, allowing termination without good cause, and allowing non-renewal without fair compensation for the franchisee's assets.
Therefore, the Michigan law does not affect all Afuri Ramen Dumpling franchise agreements universally, but it does apply specifically to those agreements entered into with franchisees in Michigan. This ensures that franchisees in Michigan receive certain protections under state law, regardless of what the standard franchise agreement might otherwise stipulate. Prospective franchisees in Michigan should carefully review the franchise agreement to ensure compliance with these state-specific protections.