In Michigan, under what conditions can Brueggers Bagels terminate a franchise agreement before its expiration?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
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 61–335)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, Michigan law has specific stipulations regarding the termination of a franchise agreement before its term expires. A provision that allows Brueggers Bagels to terminate the franchise before the end of its term is void and unenforceable unless there is "good cause" for the termination.
"Good cause" is defined as the franchisee's failure to comply with any lawful provision within the franchise agreement. However, Brueggers Bagels must provide the franchisee with written notice of the failure and a reasonable opportunity to correct the issue. The "reasonable opportunity" to cure the failure does not have to be more than 30 days.
This Michigan-specific provision aims to protect franchisees from arbitrary or unfair termination by Brueggers Bagels, ensuring they have a chance to rectify any issues before the franchise agreement is terminated. Prospective franchisees in Michigan should carefully review the franchise agreement to understand their rights and obligations, and to ensure compliance with all lawful provisions to avoid potential termination.