In Michigan, can Bonchon require a franchisee to agree to a waiver that deprives them of rights and protections under the Michigan Franchise Investment Law?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
A release or waiver of rights executed by a Franchisee will not include rights under the Washington Franchise Investment Protection Act or any rule or order thereunder except when executed pursuant to a negotiated settlement after the Franchise Agreement is in effect and where the parties are represented by independent counsel.
Provisions such as those which unreasonably restrict or limit the statute of limitations period for claims under the Act, and rights or remedies under the Act such as a right to a jury trial, may not be enforceable.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
Based on the 2025 Bonchon Franchise Disclosure Document, the FDD does not address whether a franchisee in Michigan can be required to sign a waiver that deprives them of rights and protections under the Michigan Franchise Investment Law. However, the document does state that in Washington, a release or waiver of rights executed by a Franchisee will not include rights under the Washington Franchise Investment Protection Act, with some exceptions. Provisions that unreasonably restrict or limit the statute of limitations period for claims under the Act, and rights or remedies under the Act such as a right to a jury trial, may not be enforceable in Washington.
Because the FDD specifically addresses the enforceability of waivers in Washington but does not mention Michigan, it is unclear whether similar restrictions apply to Bonchon franchisees in Michigan. Franchise agreements often contain clauses related to waivers and legal rights, and these can vary significantly from state to state due to differing franchise laws.
A prospective Bonchon franchisee in Michigan should seek clarification from Bonchon regarding the enforceability of waivers under Michigan law. It would be prudent to consult with a legal professional experienced in franchise law in Michigan to understand the full scope of their rights and any potential limitations or waivers they might be asked to sign.