In Michigan, is a Cinnaholic franchisee allowed to settle claims after entering into a franchise agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD 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 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 A 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.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 27–35)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, Michigan law protects a franchisee's right to settle claims after entering into a franchise agreement. Specifically, the FDD states that any provision requiring a franchisee to waive rights and protections under the Michigan franchise laws is void. However, this does not prevent a franchisee from settling claims after the franchise agreement is in effect.
This protection ensures that Cinnaholic franchisees in Michigan are not forced to give up their legal rights as a condition of buying into the franchise. It allows them to resolve disputes that may arise during the course of the franchise relationship through negotiated settlements, without being bound by pre-agreement waivers.
For a prospective Cinnaholic franchisee in Michigan, this means they retain the ability to address grievances or disputes that may occur after signing the franchise agreement. They can negotiate settlements without fear of prior waivers being enforced against them, providing a degree of legal flexibility and protection under Michigan franchise law.