In Michigan, can a Beehive Homes franchisee settle claims after entering into a franchise agreement?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
This shall not preclude a franchisee, after entering into a franchise agreement, from settling any and all claims.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to the 2025 Beehive Homes Franchise Disclosure Document, Michigan law addresses specific provisions within franchise agreements. For Beehive Homes franchisees in Michigan, the state prohibits certain unfair provisions that might appear in franchise documents. However, these prohibitions do not prevent a franchisee from settling claims after entering into a franchise agreement.
Specifically, the FDD states that any provision requiring a franchisee to assent to a release, assignment, novation, waiver, or estoppel that deprives them of rights and protections under the Michigan Franchise Investment Law is void and unenforceable. Despite this, Michigan law explicitly allows a Beehive Homes franchisee, after entering into the franchise agreement, to settle any and all claims they may have.
This means that while Beehive Homes cannot enforce provisions that strip away a franchisee's legal rights, a franchisee is still able to independently resolve disputes or settle claims should they arise after the franchise agreement has been signed. This provides Michigan Beehive Homes franchisees with the flexibility to address issues as they see fit, without being bound by potentially restrictive clauses that might otherwise limit their options for resolution.