Does Bee Organized have a right of first refusal to purchase the assets of a franchise in Michigan?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
A provision that requires you to resell to us items that are not uniquely identified with us.
This subdivision does not prohibit a provision that grants us a right of first refusal to purchase the assets of a franchise on the same terms and conditions as a bona fide third party willing and able to purchase those assets, nor does this subdivision prohibit a provision that grants us the right to acquire the assets of a franchise for the market or appraised value and has failed to cure the breach in the manner provided in Item 17(g).
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, Michigan law impacts the franchisor's right of first refusal. Specifically, Michigan law does not prevent Bee Organized from having a right of first refusal to purchase the assets of a franchise. This right allows Bee Organized to match the terms of a legitimate offer from a third party to purchase the franchise's assets.
For a prospective Bee Organized franchisee in Michigan, this means that if they decide to sell their franchise assets, Bee Organized has the first opportunity to buy those assets. This can potentially streamline the sale process if Bee Organized chooses to exercise its right. However, it also means the franchisee cannot immediately accept an offer from a third party without first giving Bee Organized the chance to match it.
This provision is fairly standard in franchising, as it allows the franchisor to maintain control over the brand and ensure that any new owners meet their standards. The Michigan amendment clarifies that while certain provisions that overly restrict a franchisee's rights are prohibited, the right of first refusal is permissible. This balances the franchisor's interest in protecting its brand with the franchisee's right to sell their business.