After entering into a Bw Premier Collection franchise agreement, is a franchisee precluded from settling claims?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
The following language is added before the "Table of Contents" page of the Disclosure Document:
ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT PURSUANT TO THE MICHIGAN FRANCHISE INVESTMENT LAW
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.
- (a) A prohibition on the right of a franchisee to join an association of franchisees.
- (b) A requirement that a franchisee assent to a release, assignment, novation, waiver or estoppel which deprives franchisee of rights and protections provided in this act. This shall not preclude a franchisee, after entering into a franchise agreement, from settling any and all claims.
- (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.
- (d) A provision that permits a franchisor to refuse to renew a franchise without fairly compensating the franchisee by repurchase or other means for the fair market value at the time of expiration of the franchisee's inventory, supplies, equipment, fixtures and furnishings. Personalized materials which have no value to the franchisor and inventory, supplies, equipment, fixtures and furnishings not reasonably required in the conduct of the franchise business are not subject to compensation. This subsection applies only if (i) the term of the franchise is less than 5 years and (ii) the franchisee is prohibited by the franchise or other agreement from continuing to conduct substantially the same business under another trademark, service mark, trade name, logotype, advertising of other commercial symbol in the same area subsequent to the expiration of the franchise or the franchisee does not receive at least 6 months advance notice of franchisor's intent not to renew the franchise.
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to the 2025 Bw Premier Collection FDD, Michigan franchisees are not precluded from settling claims after entering into a franchise agreement. Specifically, the addendum to the franchise disclosure document pursuant to the Michigan Franchise Investment Law states that any requirement that a franchisee assent to a release, assignment, novation, waiver, or estoppel which deprives the franchisee of rights and protections provided in this act is void and cannot be enforced against them. However, this does not prevent a Bw Premier Collection franchisee from settling any and all claims after entering into a franchise agreement.
This provision ensures that Bw Premier Collection franchisees in Michigan retain their legal rights and protections under the Michigan Franchise Investment Law, even after signing the franchise agreement. It prevents Bw Premier Collection from enforcing clauses that would force franchisees to waive their rights, but it explicitly allows franchisees to settle claims if they choose to do so.
This type of protection is not universally included in franchise agreements across all states, so it represents a specific benefit for Bw Premier Collection franchisees operating in Michigan. Franchisees should consult with legal counsel to fully understand their rights and options when considering settling any claims with Bw Premier Collection.