Under what conditions can Bombs Away terminate a franchise agreement early in Michigan?
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:
- (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 36–117)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, certain provisions regarding franchise agreements are void and unenforceable in Michigan. Specifically, a provision that allows Bombs Away to terminate a franchise before its term expires is void unless there is "good cause".
"Good cause" for early termination includes the franchisee's failure to comply with any lawful provision of the franchise agreement. However, Bombs Away must provide the franchisee with written notice of the failure and a reasonable opportunity to correct it. The FDD states that this cure period need not be more than 30 days.
This Michigan law aims to protect franchisees from arbitrary or unfair termination by Bombs Away. It ensures that franchisees have a chance to rectify any issues before their franchise agreement is terminated, providing a degree of security and fairness in the franchise relationship.