In Michigan, can Churchs Chicken require arbitration or litigation to be conducted outside of the state?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
F. A PROVISION REQUIRING THAT ARBITRATION OR LITIGATION BE CONDUCTED OUTSIDE THIS STATE. THIS SHALL NOT PRECLUDE THE FRANCHISEE FROM ENTERING INTO AN AGREEMENT, AT THE TIME OF ARBITRATION, TO CONDUCT ARBITRATION AT A LOCATION OUTSIDE THIS STATE.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 50–55)
What This Means (2025 FDD)
According to the 2025 Churchs Chicken Franchise Disclosure Document, Michigan law protects franchisees by voiding certain unfair provisions that might appear in franchise agreements. Specifically, Churchs Chicken cannot require a franchisee to conduct arbitration or litigation outside of Michigan. This protection ensures that Michigan franchisees are not forced to bear the additional costs and burdens of traveling to another state to resolve disputes.
However, the FDD also notes an exception to this rule. A Churchs Chicken franchisee in Michigan can voluntarily agree to conduct arbitration outside of the state at the time the arbitration is initiated. This provides flexibility for both parties if an out-of-state location is more convenient or suitable for a particular dispute.
This Michigan-specific disclosure is important for prospective Churchs Chicken franchisees in the state, as it clarifies their rights regarding dispute resolution and ensures that they are not unfairly disadvantaged by mandatory out-of-state arbitration or litigation requirements imposed by Churchs Chicken.