Under what circumstances can Angry Chickz refuse to permit a transfer of ownership of a franchise in Michigan?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
THE STATE OF MICHIGAN PROHIBITS CERTAIN UNFAIR PROVISIONS THAT ARE SOMETIMES IN FRANCHISE DOCUMENTS. IF ANY OF THE FOLLOWING PROVISIONS ARE IN THESE FRANCHISE DOCUMENTS, THE PROVISIONS ARE VOID AND CANNOT BE ENFORCED AGAINST YOU:
- (c) A provision that permits a Franchisor to terminate a franchise prior to the expiration of its term 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.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the addendum for the state of Michigan addresses certain unfair provisions that Michigan prohibits in franchise documents. One of these provisions relates to the termination of a franchise agreement. Specifically, Angry Chickz cannot terminate a franchise prior to the expiration of its term unless there is good cause.
Good cause, as defined in the FDD, includes the failure of the franchisee to comply with any lawful provision of the franchise agreement. However, even in the event of non-compliance, Angry Chickz must provide the franchisee with written notice of the failure and a reasonable opportunity to cure it. The FDD specifies that this cure period need not be more than 30 days.
This means that in Michigan, Angry Chickz can only refuse a transfer of ownership if the franchisee has failed to comply with the franchise agreement, has been given notice, and has not cured the failure within a reasonable timeframe (up to 30 days). This provision protects franchisees from arbitrary termination and ensures they have an opportunity to rectify any issues before losing their franchise.