What constitutes 'good cause' for City Publications to refuse a transfer of ownership in Michigan?

According to City Publications' 2025 Franchise Disclosure Document, the FDD does not define what constitutes 'good cause' for the franchisor to refuse a transfer of ownership in Michigan. The document states that Michigan prohibits certain unfair provisions that are sometimes in franchise documents. Specifically, it addresses the franchisor's ability to terminate a franchise prior to its expiration only for good cause, defining good cause as the franchisee's failure to comply with any lawful provision of the Franchise Agreement and failure to cure such breach after written notice and a reasonable opportunity to cure, which need not be more than 30 days. However, this definition of 'good cause' relates to termination, not transfer of ownership.

Item 23 includes receipts for several states, and details specific amendments or clarifications to the franchise agreement based on state laws. For example, there are receipts for California, Maryland, Rhode Island, Virginia and Washington. These receipts address issues such as franchise termination, non-renewal, waivers, covenants not to compete, governing law, and arbitration, aiming to ensure franchisee rights are protected under those states' laws.

Since the excerpt does not define 'good cause' for refusing a transfer of ownership in Michigan, a prospective franchisee should seek clarification from City Publications regarding the specific conditions or criteria that would constitute 'good cause' to deny a transfer. Understanding these conditions is crucial for franchisees planning to eventually sell their franchise.