In Michigan, what constitutes 'good cause' for Bee Organized to terminate a franchise agreement?
Bee_Organized 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 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, the Michigan FDD Amendment clarifies what constitutes 'good cause' for termination of a franchise agreement in Michigan. It states that Bee Organized can terminate a franchise agreement before its expiration only for 'good cause'.
'Good cause' is defined as the franchisee's failure to comply with any lawful provision of the Franchise Agreement. However, Bee Organized must provide the franchisee with written notice of the failure and a reasonable opportunity to correct the issue.
The amendment specifies that the 'reasonable opportunity' to cure the failure does not need to exceed 30 days. This means that if a Bee Organized franchisee in Michigan violates a lawful term of the franchise agreement, they have up to 30 days after receiving written notice to fix the problem, or Bee Organized can terminate the agreement.