What specific rights concerning franchise termination does California Business & Professions Code Sections 20000 through 20043 provide to All County franchisees?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
ALL COUNTY®* FRANCHISE DISCLOSURE DOCUMENT FOR THE STATE OF MICHIGAN
NOTICE REQUIRED BY STATE OF MICHIGAN
THE STATE OF MICHIGAN PROHIBITS CERTAIN UNFAIR PROVISIONS THAT ARE SOMETIMES IN FRANCHISE DOCUMENTS. IF ANY OF THE FOLLOWING PROVISIONS ARE THESE FRANCHISE DOCUMENTS, THE PROVISIONS ARE VOID AND CANNOT BE ENFORCED AGAINST YOU.
Each of the following provisions is void and unenforceable if contained in any documents relating to a franchise:
- (a) A prohibition on the right of a franchisee to join an association of franchisees.
- (b) A requirement that the franchisee assent to a release, assignment, novation, waiver, or estoppel which deprives a franchisee of rights and protections provided in this act. This shall 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 terms except for good cause. Good cause shall include the failure of the franchisee to comply with any lawful provision of the franchise agreement and to cure such failure after being given written notice thereof and a reasonable opportunity, which in no event need be more than 30 days, to cure such 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.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, California Business & Professions Code Sections 20000 through 20043 provide specific rights to All County franchisees regarding termination. If any provision in the Franchise Agreement is inconsistent with this law, the law will take precedence.
Specifically, the FDD states that a provision permitting All County to terminate the franchise before its term expires is void and unenforceable unless there is "good cause." Good cause is defined as the franchisee's failure to comply with a lawful provision of the franchise agreement, and the franchisee must be given written notice and a reasonable opportunity to correct the failure, which need not exceed 30 days.
Additionally, the FDD indicates that any provision allowing All County to refuse renewal of the franchise without fairly compensating the franchisee for the fair market value of their inventory, supplies, equipment, fixtures, and furnishings is void and unenforceable. This protection applies only if the franchise term is less than 5 years and the franchisee is prohibited from continuing a similar business in the same area after the franchise expires, or if the franchisee does not receive at least 6 months' advance notice of All County's intent not to renew the franchise. Furthermore, All County cannot refuse to renew a franchise on terms not generally available to other franchisees of the same class or type under similar circumstances.