In Michigan, after entering into a Bombs Away franchise agreement, can a franchisee settle claims against the franchisor?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 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.
Each of the following provisions is void and unenforceable if contained in any documents relating to a franchise:
- (a) A prohibition on the right of a franchisee to join an association of franchisees.
- (b) A requirement that a franchisee assent to a release, assignment, novation, waiver, or estoppel which deprives a franchisee of rights and protection provided in this act. This shall not preclude a franchisee, after entering into a franchise agreement, from settling any and all claims.
- (c) A provision that permits a franchisor to terminate a franchise prior to the expiration of its term except for good cause.
Source: Item 23 — RECEIPTS (FDD pages 36–117)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, Michigan law protects a franchisee's right to settle claims against Bombs Away after the franchise agreement has been signed. Specifically, any provision in the franchise documents that requires a franchisee to waive rights and protections afforded by the Michigan Franchise Investment Law is void and unenforceable.
This protection ensures that Bombs Away franchisees are not forced to forfeit their legal rights through pre-agreement clauses. It allows franchisees to address grievances or disputes that may arise during the franchise term by settling claims against Bombs Away.
It is important to note that this protection applies specifically after the franchise agreement has been entered into. The FDD states that franchisees are not precluded from settling claims after entering into a franchise agreement. This implies that while franchisees cannot be forced to waive their rights upfront, they retain the ability to negotiate settlements with Bombs Away should issues arise during the course of the franchise relationship.