In Michigan, does the prohibition against requiring arbitration or litigation outside the state prevent a Beehive Homes franchisee from agreeing to a different location at the time of arbitration?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- (f) A provision requiring that arbitration or litigation be conducted outside this state.
This shall not preclude the franchisee from entering into an agreement, at the time of arbitration, to conduct arbitration at a location outside this state.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, Michigan law includes specific protections for franchisees. One such protection addresses the location of arbitration or litigation.
The FDD states that any provision requiring arbitration or litigation to be conducted outside of Michigan is void and unenforceable against the franchisee. However, this protection does not prevent a Beehive Homes franchisee from later agreeing to conduct arbitration at a location outside of Michigan at the time the arbitration is initiated.
In practical terms, this means that while Beehive Homes cannot force a franchisee to arbitrate or litigate disputes outside of Michigan through the initial franchise agreement, the franchisee can voluntarily agree to do so later if they choose. This provides flexibility for both parties to find a mutually agreeable location for dispute resolution while safeguarding the franchisee's initial rights under Michigan law.