What is the specific definition of 'good cause' for termination of a Beauty Bungalows franchise in Michigan?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
Each of the following provisions is void and unenforceable if contained in any documents relating to a franchise:
- (c) A provision that permits us to terminate a Franchise prior to the expiration of itsterm exceptfor good cause.
Good cause shall include your failure to comply with any lawful provision of the FranchiseAgreement 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 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, Michigan law has specific stipulations regarding franchise terminations. For Michigan franchisees, Beauty Bungalows can only terminate a franchise agreement before its expiration if there is 'good cause'.
The FDD defines 'good cause' specifically within the context of Michigan law. It states that 'good cause' includes a franchisee's failure to comply with any lawful provision of the Franchise Agreement. However, this failure must also include a written notice from Beauty Bungalows to the franchisee, giving them a reasonable opportunity to correct the issue.
Importantly, the 'reasonable opportunity' to cure the failure does not have to exceed 30 days. This means that if a Beauty Bungalows franchisee in Michigan violates a term of the franchise agreement, they have a maximum of 30 days to fix the issue after receiving written notice, or Beauty Bungalows can terminate the agreement.