What constitutes 'good cause' for Bw Premier Collection to refuse a transfer of ownership in Michigan?

According to the 2025 FDD, Bw Premier Collection is permitted to refuse a transfer of ownership of a franchise in Michigan for 'good cause'. The definition of 'good cause' includes, but is not limited to, several specific scenarios. These include the proposed transferee's failure to meet Bw Premier Collection's current reasonable qualifications or standards, ensuring that all franchisees meet a certain level of competence and maintain brand standards. Another cause is if the proposed transferee is a competitor of Bw Premier Collection or its subfranchisor, preventing potential conflicts of interest and protecting the brand's competitive position.

Additionally, Bw Premier Collection can refuse a transfer if the proposed transferee is unwilling to agree in writing to comply with all lawful obligations, ensuring that new franchisees are committed to adhering to the franchise agreement. Finally, 'good cause' exists if the franchisee or proposed transferee fails to pay any sums owing to Bw Premier Collection or to cure any default in the franchise agreement at the time of the proposed transfer, addressing financial and contractual compliance issues.

It is important to note that this does not prevent Bw Premier Collection from exercising a right of first refusal to purchase the franchise, giving them the option to buy the franchise back before it is transferred to a third party. This addendum clarifies the conditions under which Bw Premier Collection can refuse a transfer of ownership in Michigan, providing more specific guidance than the general franchise agreement. Prospective franchisees in Michigan should carefully consider these provisions, as they outline the circumstances under which they might be prevented from transferring their franchise to a buyer of their choice.