Under what conditions can City Publications terminate a franchise agreement in Michigan before its expiration?
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 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 the 2025 City Publications Franchise Disclosure Document, Michigan law includes specific stipulations regarding the termination of a franchise agreement. These stipulations override any conflicting terms in the franchise agreement.
Specifically, City Publications cannot terminate a franchise agreement in Michigan before its expiration unless there is "good cause." The definition of "good cause" includes the franchisee's failure to comply with any lawful provision of the Franchise Agreement.
However, even if there is a failure to comply, City Publications must provide the franchisee with written notice of the failure and a reasonable opportunity to correct it. The franchisee must be given an opportunity to cure the failure, and this period needs to be reasonable, but it does not have to be more than 30 days.