factual

In Michigan, can Crave refuse to renew a franchise on terms generally available to other Crave franchisees?

Crave Franchise · 2025 FDD

Answer 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:

  • (e) A provision that permits the franchisor to refuse to renew a franchise on terms generally available to other franchisees of the same class or type under similar circumstances.

This section does not require a renewal provision.

Source: Item 23 — RECEIPTS (FDD pages 63–253)

What This Means (2025 FDD)

According to Crave's 2025 Franchise Disclosure Document, Michigan law prohibits Crave from including a provision in its franchise agreement that allows them to refuse renewal on terms generally available to other franchisees of the same class or type under similar circumstances. However, this does not mean Crave is required to offer a renewal provision at all.

This protection ensures that Crave franchisees in Michigan are not unfairly discriminated against during the renewal process. Crave cannot offer better renewal terms to some franchisees while denying those same terms to others who are similarly situated.

However, prospective franchisees should be aware that this provision does not guarantee renewal. Crave can still choose not to renew a franchise, but they must do so on terms that are consistent with what they offer to other franchisees in similar situations. It is important to note that Michigan law requires fair compensation to the franchisee if a renewal is denied, covering the fair market value of inventory, supplies, equipment, fixtures, and furnishings, with some exceptions for personalized or unnecessary items. This compensation rule applies if the franchise term is less than five years and the franchisee is restricted from operating a similar business in the same area after the franchise expires, or if the franchisee does not receive at least six months' advance notice of non-renewal.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.