What items are excluded from compensation if Bw Premier Collection refuses to renew a franchise?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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 Bw Premier Collection's 2025 Franchise Disclosure Document, specific stipulations apply regarding compensation to franchisees in Michigan if Bw Premier Collection chooses not to renew a franchise agreement. These stipulations are in place to protect franchisees from unfair practices related to franchise termination and renewal.
Specifically, the FDD states that personalized materials which have no value to the franchisor are excluded from compensation. Additionally, inventory, supplies, equipment, fixtures, and furnishings not reasonably required in the conduct of the franchise business are also excluded from compensation. This means that Bw Premier Collection franchisees in Michigan will not be compensated for these specific items if the franchise is not renewed.
This provision applies only if two conditions are met: (i) the term of the franchise is less than 5 years, and (ii) the franchisee is prohibited from continuing to conduct substantially the same business under another trademark in the same area after the franchise expires, or the franchisee does not receive at least 6 months' advance notice of Bw Premier Collection's intent not to renew the franchise. Therefore, franchisees should carefully review their franchise agreement and any related agreements to fully understand their rights and obligations regarding renewal and compensation in the state of Michigan.