In Michigan, can a Cr3 American Exteriors franchisee be prohibited from joining an association of franchisees?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
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) A prohibition on the right of a franchisee to join an association of franchisees.
Source: Item 23 — RECEIPTS (FDD pages 53–150)
What This Means (2025 FDD)
According to the 2025 Cr3 American Exteriors Franchise Disclosure Document, Michigan law prohibits franchise agreements from including certain unfair provisions. Specifically, if a Cr3 American Exteriors franchise agreement contains a provision that prohibits a franchisee from joining an association of franchisees, that provision is considered void and unenforceable in Michigan. This protection applies specifically to franchisees who are residents of Michigan or who locate their franchises within the state.
This means that Cr3 American Exteriors cannot legally prevent a franchisee in Michigan from joining or forming an association with other franchisees. Such associations can provide a platform for franchisees to collectively address concerns, share best practices, and negotiate with the franchisor on matters of mutual interest.
Prospective Cr3 American Exteriors franchisees in Michigan should be aware of this protection and understand that they have the right to associate with other franchisees without fear of reprisal from the franchisor. This provision aims to balance the power dynamic between franchisors and franchisees, ensuring that franchisees have a voice and can act collectively to protect their interests.