In Michigan, can C3 Wellness Spa prohibit a franchisee from joining an association of franchisees?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
MICHIGAN FDD ADDENDUM
Amendments to the C3 Wellness Franchise Disclosure Document
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 of your right to join an association of Franchisees.
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to C3 Wellness Spa's 2024 Franchise Disclosure Document, if a provision in the franchise documents prohibits a franchisee's right to join an association of franchisees, that provision is void and cannot be enforced against the franchisee in the state of Michigan.
This addendum ensures that C3 Wellness Spa franchisees in Michigan have the right to associate with one another without fear of reprisal from the franchisor. This is a protection under Michigan state law, and C3 Wellness Spa acknowledges that any clause to the contrary is unenforceable.
This type of provision is fairly common in franchise agreements to protect the rights of franchisees. Franchisee associations can provide a collective voice for franchisees, allowing them to negotiate with the franchisor on issues of concern and share best practices.