In Michigan, can Crave require a franchisee to resell items that are not uniquely identified with Crave?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
CRAVE FDD 2025 A 82 (h) A provision that requires the franchisee to resell to the franchisor items that are not uniquely identified with the franchisor.
This subdivision does not prohibit a provision that grants to a franchisor a right of first refusal to purchase the assets of a franchise on the same terms and conditions as a bona fide third party willing and able to purchase those assets, nor does this subdivision prohibit a provision that grants the franchisor the right
to acquire the assets of a franchise for the market or appraised value of such assets if the franchisee has breached the lawful provisions of the franchise agreement and has failed to cure the breach in the manner provided in subdivision (c).
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 requires a franchisee to resell items to Crave that are not uniquely identified with the franchisor.
This protection for franchisees in Michigan prevents Crave from obligating franchisees to buy back inventory or other items that do not carry the Crave brand. This could protect franchisees from being forced to take back items that would be difficult to resell or reuse.
It is important to note that this restriction does not prevent Crave from having a right of first refusal to purchase the assets of a franchise on the same terms as a third party. It also does not prevent Crave from acquiring the assets of a franchise if the franchisee has breached the franchise agreement and failed to correct the breach.