In Michigan, what are some examples of 'good cause' for Beverly Anns Cookie to refuse a transfer of ownership?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
- (g) A provision which permits us to refuse to permit a transfer of ownership of a Franchise, except for good cause.
This subdivision does not prevent us from exercising a right of first refusal to purchase the Franchise.
Good cause shall include, but is not limited to:
(i) the failure of the proposed transferee to meet our then-current reasonable qualifications or standards.
(ii) the fact that the proposed transferee is a competitor of us or our subfranchisor.
(iii) the unwillingness of the proposed transferee to agree in writing to comply with all lawful obligations.
(iv) your or proposed transferee's failure to pay any sums owing to us or to cure any default in the Franchise Agreement existing at the time of the proposed transfer.
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, specifically for franchises operating in Michigan, there are certain conditions under which Beverly Anns Cookie can refuse a transfer of ownership. These 'good cause' reasons are designed to protect the brand and the integrity of the franchise system.
The FDD outlines several scenarios that constitute 'good cause'. These include if the proposed transferee does not meet Beverly Anns Cookie's then-current reasonable qualifications or standards. Another reason is if the proposed transferee is a competitor of Beverly Anns Cookie or its subfranchisor. Beverly Anns Cookie can also refuse a transfer if the proposed transferee is unwilling to agree in writing to comply with all lawful obligations.
Additionally, Beverly Anns Cookie can refuse a transfer if the franchisee or the proposed transferee has failed to pay any sums owing to Beverly Anns Cookie or has failed to cure any default in the Franchise Agreement existing at the time of the proposed transfer. These stipulations ensure that any new franchisee meets the standards and obligations set by Beverly Anns Cookie, maintaining consistency and protecting the brand's reputation.