Under what conditions can Beehive Homes terminate a franchise agreement in Michigan before its expiration?
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.
- (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 the 2025 Beehive Homes Franchise Disclosure Document, certain provisions apply specifically to franchise agreements governed by Michigan Franchise Investment Law. These provisions address circumstances under which Beehive Homes can terminate a franchise agreement before its term expires.
Specifically, Beehive Homes can only terminate a franchise agreement prior to its expiration for "good cause." The FDD defines "good cause" as the franchisee's failure to comply with any lawful provision of the franchise agreement.
However, the franchisee must be given written notice of the failure and a reasonable opportunity to correct it. The "reasonable opportunity" to cure the failure does not have to be more than 30 days. This stipulation ensures that Beehive Homes franchisees in Michigan have some protection against arbitrary or unfair termination while also requiring them to adhere to the terms of the franchise agreement.