In Michigan, does City Publications prohibit a franchisee from joining an association of franchisees?
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.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the franchise agreement cannot prohibit a franchisee in Michigan from joining an association of franchisees. The FDD states that Michigan prohibits certain unfair provisions that are sometimes included in franchise documents. If any of these provisions are present, they are considered void and unenforceable against the franchisee. One such prohibited provision is a restriction on the franchisee's right to join an association of franchisees.
This protection ensures that City Publications franchisees in Michigan have the freedom to associate with one another, share information, and collectively address issues with the franchisor. This can be a significant benefit, as it allows franchisees to have a stronger voice and potentially negotiate better terms or resolve disputes more effectively.
Prospective franchisees in Michigan should carefully review the franchise agreement to ensure that it does not contain any language that could be interpreted as restricting their right to join a franchisee association. If such language is present, it is important to understand that it is likely unenforceable under Michigan law. Franchisees should consult with an attorney to fully understand their rights and options.