In Michigan, can Cinnaholic refuse to renew a franchise on terms not generally available to other franchisees of the same class?

According to Cinnaholic's 2025 Franchise Disclosure Document, Michigan law includes specific provisions that protect franchisees. One of these provisions directly addresses franchise renewal terms. Specifically, Cinnaholic cannot refuse to renew a franchise in Michigan if the renewal terms are not generally available to other franchisees of the same class or type operating under similar circumstances. This ensures that Cinnaholic franchisees in Michigan are treated equitably in the renewal process compared to their peers. However, the FDD also clarifies that this section does not require Cinnaholic to offer any renewal provision at all.

This protection prevents Cinnaholic from unfairly targeting individual franchisees with onerous renewal conditions. It aims to create a level playing field where renewal terms are standardized across similar franchisees. This provision is particularly important for prospective franchisees in Michigan as it safeguards against potential discrimination or arbitrary decisions by Cinnaholic during the renewal phase.

However, it is important to note that this protection only applies if Cinnaholic offers renewal options to its franchisees. The disclosure explicitly states that the law does not mandate Cinnaholic to include a renewal provision in its franchise agreements. Therefore, potential franchisees should carefully review the franchise agreement to understand whether a renewal option exists and what specific terms and conditions apply. Understanding these terms is crucial for making an informed investment decision and planning for the future of their Cinnaholic franchise in Michigan.