In Michigan, can Crave require a franchisee to agree to a waiver that deprives them of rights and protections under the Michigan Franchise Investment Law?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
DISCLOSURE REQUIRED BY THE STATE OF MICHIGAN
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 franchises.
(b) A requirement that a franchisee assent to a release, assignment, novation, waiver or estoppel which deprives a franchisee of rights and protections provided in this act.
This shall not preclude a franchisee, after entering into a franchise agreement, from settling all claims.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Michigan law prohibits certain unfair provisions in franchise documents. If any of these provisions are present in Crave's franchise documents, they are considered void and unenforceable against the franchisee.
Specifically, Crave cannot require a franchisee to agree to a release, assignment, novation, waiver, or estoppel that would deprive the franchisee of the rights and protections provided under the Michigan Franchise Investment Law. However, this does not prevent a franchisee from settling claims after entering into the franchise agreement.
This protection ensures that Michigan franchisees retain their legal rights and recourse under state law, preventing Crave from using contractual terms to circumvent these protections. Prospective franchisees in Michigan should carefully review the franchise agreement to ensure compliance with these provisions and consult with legal counsel if they have any concerns.