In Michigan, can a Beard Papas franchisee be required to assent to a release that deprives them of rights and protections provided in the Michigan franchise act?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
Amendments to the Beard Papa's Franchise Disclosure Document
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- 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.
- B. A requirement that you assent to a release, assignment, novation, waiver or estoppel that deprives you of rights and protections provided in this act. This shall not preclude you, after entering into a Franchise Agreement, from settling any and all claims.
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to the 2025 Beard Papas Franchise Disclosure Document, if any provisions in the franchise documents require a franchisee in Michigan to assent to a release, assignment, novation, waiver, or estoppel that deprives them of rights and protections provided in the Michigan franchise act, such provisions are void and cannot be enforced against the franchisee. However, this does not prevent a franchisee from settling any and all claims after entering into a Franchise Agreement.
This amendment to the Michigan FDD is designed to protect franchisees from unknowingly waiving their legal rights under the Michigan franchise law. It ensures that franchisees are not forced into unfair agreements that strip them of the protections afforded by state law. This is a crucial safeguard, as franchise agreements often favor the franchisor, and franchisees may not fully understand the implications of certain clauses.
This protection is common in franchise agreements to ensure compliance with state laws designed to protect franchisees. Prospective Beard Papas franchisees in Michigan should carefully review the franchise agreement and any related documents with legal counsel to ensure full understanding of their rights and obligations under both the agreement and Michigan franchise law.