In Michigan, what is the effect of a requirement that a Beauty Bungalows franchisee assent to a release that deprives them of rights and protections?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
MICHIGAN
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.
Each of the following provisions is void and unenforceable if contained in any documents relating to a franchise:
(a) A prohibition on your right to join an association of franchisees.
(b) A requirement that you assent to a release, assignment, novation, waiver, or estoppel which 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 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to the 2025 Beauty Bungalows Franchise Disclosure Document, Michigan law protects franchisees from certain unfair provisions that may appear in franchise agreements. Specifically, if the franchise documents contain a requirement that a franchisee assent to a release, assignment, novation, waiver, or estoppel that deprives them of rights and protections provided under Michigan's franchise laws, that provision is considered void and unenforceable. This means that Beauty Bungalows cannot legally enforce such a requirement against a franchisee in Michigan. However, the FDD clarifies that this does not prevent a franchisee from settling claims after entering into the Franchise Agreement.
This protection ensures that prospective Beauty Bungalows franchisees in Michigan are not forced to unknowingly or unwillingly give up their legal rights and protections as part of the franchising process. It aims to create a fairer balance of power between the franchisor and franchisee, preventing franchisors from using overreaching contract terms to limit franchisees' ability to seek legal recourse or assert their rights.
For a prospective Beauty Bungalows franchisee in Michigan, this means that any clause in the franchise agreement that requires them to waive their rights or protections under Michigan law is not enforceable. They should be aware of this protection and consult with an attorney if they encounter such provisions in the franchise agreement. This provision helps to ensure that franchisees are treated fairly and have recourse if Beauty Bungalows violates the terms of the agreement or applicable laws.