Under what conditions will the amendment to the Belocal franchise agreement regarding jurisdictional requirements of Michigan law be effective?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Each provision of this Amendment will be effective only to the extent that the jurisdictional requirements of Michigan law applicable to the provision are met independent of this Amendment. This Amendment will have no force or effect if such jurisdictional requirements are not met.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, an amendment to the franchise agreement exists for franchisees in Michigan. This amendment includes a statement ensuring that no agreement signed by the franchisee waives rights under Michigan franchise law, including claims of fraud or disclaiming reliance on franchisor statements. This protection supersedes any conflicting terms in the franchise agreement.
However, the effectiveness of this amendment is conditional. Each provision within the amendment is only effective if the jurisdictional requirements of Michigan law are independently met, without relying on the amendment itself. If these jurisdictional requirements are not met, the amendment has no force or effect.
In practical terms, this means that while Belocal includes specific protections for Michigan franchisees, those protections are only valid if they align with existing Michigan law. A prospective franchisee should consult with a legal professional in Michigan to fully understand the implications of this amendment and ensure that their rights are protected under state law. This is especially important given that the amendment's effectiveness hinges on meeting jurisdictional requirements independent of the amendment itself.