Does Crown Gold Exchange prohibit franchisees from joining an association of franchisees?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 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.
Each of the following provisions is void and unenforceable if contained in any documents relating to a franchise:
- (a) A prohibition on the right of a franchisee to join an association of franchisees.
Source: Item 23 — RECEIPTS (FDD pages 39–114)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, Michigan franchisees have specific protections under state law. The FDD includes a Michigan addendum that addresses unfair provisions sometimes found in franchise documents.
Specifically, the addendum states that any provision in the franchise documents that prohibits a franchisee from joining an association of franchisees is void and unenforceable in Michigan. This means that Crown Gold Exchange cannot legally prevent a franchisee in Michigan from joining or forming a franchisee association.
This protection ensures that Michigan Crown Gold Exchange franchisees have the right to associate with one another, share information, and collectively address issues with the franchisor without fear of reprisal. This type of provision is designed to balance the power dynamic between franchisor and franchisee and is a right granted by Michigan state law.