In Michigan, what constitutes 'good cause' for Beehive Homes to terminate a franchise agreement?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) A provision that permits a franchisor to terminate a franchise prior to the expiration of its term except for good cause.
Good cause shall include the failure of the franchisee to comply with any lawful provision of the franchise agreement and to cure such failure after being given written notice thereof and a reasonable opportunity, which in no event need be more than 30 days, to cure such failure.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, certain provisions are in place to protect franchisees in Michigan. Specifically, Michigan law prohibits Beehive Homes from terminating a franchise agreement before its expiration unless there is 'good cause'.
In the context of a Beehive Homes franchise in Michigan, 'good cause' is explicitly defined as the franchisee's failure to comply with any lawful provision within the franchise agreement. However, the franchisee must be given written notice of this failure and a reasonable opportunity to correct it.
This opportunity to cure the failure does not have to exceed 30 days. This means that if a Beehive Homes franchisee in Michigan violates a term of their franchise agreement, they have at least some time (up to 30 days) to fix the issue before Beehive Homes can terminate the agreement.