What constitutes 'good cause' for Bw Premier Collection to terminate a franchise agreement in Michigan?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) A provision that permits 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 reasonably opportunity, which in no event need be more than 30 days, to cure such failure.
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to the 2025 Bw Premier Collection Franchise Disclosure Document, Michigan franchisees have specific protections under the Michigan Franchise Investment Law regarding termination of the franchise agreement. The FDD stipulates that any provision allowing Bw Premier Collection to terminate the franchise before its term expires is void unless there is 'good cause'.
'Good cause' is explicitly defined as the franchisee's failure to comply with any lawful provision within the franchise agreement. However, Bw Premier Collection must provide the franchisee with written notice of the failure and a reasonable opportunity to correct the issue.
This cure period does not have to exceed 30 days. This means that if a Bw Premier Collection franchisee in Michigan breaches a part of their agreement, the franchisor must give them a written warning and at least some time to fix the problem before terminating the agreement, but that cure period will not be required to be longer than 30 days.