After entering into a Bombs Away franchise agreement, is a franchisee allowed to settle claims?

According to the 2024 Bombs Away FDD, Michigan franchisees retain the right to settle claims after entering into a franchise agreement. Specifically, the FDD states that any provision requiring a franchisee to assent to a release, assignment, novation, waiver, or estoppel that deprives them of rights and protections under the Michigan Franchise Investment Law is void and unenforceable. However, this does not prevent a franchisee from settling claims after the franchise agreement has been established.

This addendum ensures that Bombs Away franchisees in Michigan are not forced to waive their legal rights at the outset of the franchise relationship. It allows them the flexibility to resolve disputes and settle claims that may arise during the course of the franchise agreement. This protection is specific to the Michigan Franchise Investment Law, meaning it applies to rights and protections granted under that law.

For a prospective Bombs Away franchisee in Michigan, this means they cannot be compelled to sign away their rights to pursue claims or legal protections afforded by Michigan franchise law when initially signing the franchise agreement. However, they retain the ability to negotiate and settle any claims that may arise after the agreement is in effect. This provides an added layer of security and ensures that franchisees are not unduly restricted from seeking resolution to potential issues during their franchise term.

It is important to note that this provision applies specifically to Michigan law. Franchisees in other states should review their respective state addenda within the FDD to understand their rights regarding waivers, releases, and settlements. The FDD also advises consulting with an attorney to fully understand the implications of state and federal laws on the franchise agreement.