In Michigan, does the City Publications franchise agreement prevent the franchisee from settling claims after entering into the agreement?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
FOR THE STATE OF MICHIGAN
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- 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 prohibition of the right of Franchisee to join an association of franchisees.
- ◼ A requirement that a Franchisee assent to a release, assignment, novation, waiver or estoppel which deprives a Franchisee of rights and protections provided under Michigan law. This shall not preclude a Franchisee, after entering into a Franchise Agreement, from settling any and all claims.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to the 2025 City Publications Franchise Disclosure Document, the franchise agreement does not prevent a franchisee in Michigan from settling claims after entering into the agreement. The FDD includes a specific provision for Michigan franchisees stating that any requirement for a franchisee to assent to a release, assignment, novation, waiver, or estoppel that deprives them of rights and protections under Michigan law is void and unenforceable.
However, this provision explicitly states that it "shall not preclude a Franchisee, after entering into a Franchise Agreement, from settling any and all claims." This means that while City Publications cannot force a franchisee to waive their rights at the outset, the franchisee retains the ability to settle claims voluntarily after the franchise agreement is in effect.
This type of provision is included to comply with Michigan state law, which prohibits certain unfair provisions in franchise agreements. Prospective franchisees should be aware of these protections and consult with legal counsel to fully understand their rights under Michigan law and the City Publications franchise agreement.