What constitutes 'good cause' for City Publications to terminate a franchise agreement in Michigan?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
◼ A provision that permits a Franchisor to terminate a franchise prior to the expiration of this term except for good cause. Good cause shall include the failure of the Franchisee to comply with any lawful provision of the Franchise Agreement and to cure such failure after being given written notice thereof and a reasonable opportunity, which in no event need be more than 30 days, to cure such failure.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the definition of 'good cause' for termination of a franchise agreement in Michigan is explicitly defined within the context of prohibited unfair provisions.
The FDD states that Michigan prohibits franchise agreements from allowing City Publications to terminate a franchise before its expiration without good cause. 'Good cause' is defined as the franchisee's failure to comply with any lawful provision of the Franchise Agreement.
However, City Publications must provide the franchisee with written notice of the failure and a reasonable opportunity to correct it. The 'reasonable opportunity' to cure the failure does not need to exceed 30 days. This stipulation ensures that franchisees in Michigan are afforded due process and a chance to rectify any breaches of contract before City Publications can terminate the agreement.