In Michigan, what constitutes 'good cause' for Beard Papas to terminate a franchise agreement?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. A provision that permits us to terminate a franchise before the expiration of this term except for good cause. Good cause shall include your failure to comply with any lawful provision of the Franchise Agreement and to cure the failure after being given written notice of the failure and a reasonable opportunity, which in no event need be more than 30 days, to cure the failure.
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to the 2025 Beard Papas Franchise Disclosure Document, the Michigan FDD Amendment states that Beard Papas can only terminate a franchise agreement before its expiration for "good cause." In Michigan, 'good cause' includes a franchisee's failure to comply with any lawful provision of the Franchise Agreement.
However, before Beard Papas can terminate the agreement, they must provide the franchisee with written notice of the failure. The franchisee then has a reasonable opportunity to correct the failure.
The amendment specifies that the opportunity to cure the failure does not need to be more than 30 days. This means that a Beard Papas franchisee in Michigan will have at least some time, up to 30 days, to fix any issues before the franchise can be terminated for failing to comply with the Franchise Agreement.