Does the Beehive Homes FDD prevent a franchisee from settling any and all claims after entering into a franchise agreement?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
Dated: | | | Franchisee: | Dated: | |
THE FOLLOWING APPLY ONLY TO TRANSACTIONS GOVERNED BY THE MICHIGAN FRANCHISE INVESTMENT LAW
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 the right of a franchisee to join an association of franchisees.
- (b) A requirement that a franchisee assent to a release, assignment, novation, waiver, or estoppel which deprives a franchisee of rights and protections provided in this act.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the franchise agreement does not prevent a franchisee from settling claims after entering into the agreement, specifically in transactions governed by Michigan Franchise Investment Law.
The FDD states that Michigan prohibits certain unfair provisions that are sometimes in franchise documents. One such provision that would be void and unenforceable is a requirement that a franchisee assent to a release, assignment, novation, waiver, or estoppel which deprives a franchisee of rights and protections provided in the Michigan Franchise Investment Law.
However, the FDD clarifies that this prohibition does not prevent a Beehive Homes franchisee from settling any and all claims after entering into the franchise agreement. This protection applies specifically to franchise agreements governed by the Michigan Franchise Investment Law.