Under what conditions can Bee Organized terminate a franchise agreement before its expiration in Michigan?
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 the 2025 FDD, the Michigan FDD Amendment specifies the conditions under which Bee Organized can terminate a franchise agreement before its expiration in Michigan. The franchise agreement can only be terminated for "good cause." Good cause includes a 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 failure. The FDD states that this opportunity to cure the failure need not be more than 30 days.
This amendment ensures that Bee Organized cannot terminate a franchise agreement arbitrarily or without giving the franchisee a chance to rectify any issues, providing some protection to the franchisee under Michigan law.