Can Beehive Homes require a franchisee to assent to a waiver that deprives them of rights and protections?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
D 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.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, whether Beehive Homes can require a franchisee to assent to a waiver that deprives them of rights and protections depends on the jurisdiction. Specifically, the FDD states that if the franchise is governed by Michigan law, certain provisions are prohibited and considered void.
For franchisees in Michigan, Beehive Homes franchise documents cannot enforce a requirement that a franchisee assent to a release, assignment, novation, waiver, or estoppel that deprives the franchisee of their rights and protections. This means that Beehive Homes cannot include clauses in their franchise agreement that force a franchisee to give up legal rights or defenses they would otherwise have.
Furthermore, the 2025 FDD states that Minnesota Rules 2860.4400(D) prohibits Beehive Homes from requiring a franchisee to assent to a general release. Also, the franchisee cannot consent to Beehive Homes obtaining injunctive relief. These stipulations protect franchisees in Minnesota from being forced to broadly relinquish their legal rights or agree to actions that might harm their interests.