Under what conditions can Casiola terminate a franchise before its expiration?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
- C.
A provision that permits us to terminate a franchise before the expiration of this term except for good cause.
Good cause shall include your failure to comply with any lawful provision of the Franchise Agreement and to cure the failure after being given written notice of the failure and a reasonable opportunity, which in no event need be more than 30 days, to cure the failure.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, the Michigan FDD Amendment states that Casiola can terminate a franchise before its expiration only for good cause. Good cause includes a franchisee's failure to comply with any lawful provision of the Franchise Agreement.
However, Casiola must provide the franchisee with written notice of the failure and a reasonable opportunity to cure it. The cure period does not need to be more than 30 days.
It's important to note that this termination clause is specific to Michigan. The Washington FDD Amendment indicates that RCW 19.100.180 may supersede the franchise agreement in areas of termination and renewal. Similarly, the Virginia FDD Amendment states that it is unlawful for a franchisor to cancel a franchise without reasonable cause under Section 13.1-564 of the Virginia Retail Franchising Act. The Minnesota Franchise Agreement Amendment indicates that Minnesota law provides a franchisee with certain termination and non-renewal rights, requiring 180 days notice of nonrenewal in certain specified cases.