In Michigan, can Bee Organized require a franchisee to resell items that are not uniquely identified with them?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
Michigan FDD Amendment
Amendments to the Bee Organized 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.
- A. A prohibition of your right to join an association of franchisees.
- 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.
- 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.
- D. A provision that permits us to refuse to renew a franchise without fairly compensating you by repurchase or other means for the fair market value at the time of expiration of your inventory, supplies, equipment, fixtures and furnishings. Personalized materials that have no value to us and inventory, supplies, equipment, fixtures and furnishings not reasonably required in the conduct of the franchise business are not subject to compensation. This subsection applies only if: (a) the term of the franchise
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to the 2025 Bee Organized Franchise Disclosure Document, Michigan law prohibits certain unfair provisions that are sometimes included in franchise documents. Specifically, if any provisions in the Bee Organized franchise documents require a franchisee to waive rights and protections provided by the act, those provisions are void and cannot be enforced against the franchisee.
One of the prohibited provisions includes a requirement that a franchisee assent to a release, assignment, novation, waiver, or estoppel that deprives them of rights and protections provided in the Michigan franchise law. This means Bee Organized cannot enforce any clause that forces a franchisee to surrender their legal rights under Michigan's franchise regulations.
While the FDD states that Michigan prohibits certain unfair provisions, it does not specifically address whether Bee Organized can require a franchisee to resell items not uniquely identified with them. A prospective franchisee should seek clarification from Bee Organized regarding any requirements to resell items and how those requirements align with Michigan franchise law.