In Michigan, can Deck Medic require a Deck Medic franchisee to waive rights and protections provided in the Michigan Franchise Investment Law?
Deck_Medic 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.
- A. A prohibition of your right to join an association of Franchisees.
- B. A requirement that you assent to a release, assignment, novation, waiver or estoppel that deprives you of rights and protections provided in this act. This shall not preclude you, after entering into a Franchise Agreement, from settling any and all claims.
- C. A provision that permits us to terminate a franchise before the expiration of this term except for good cause. Good cause shall include your failure to comply with any lawful provision of the Franchise Agreement and to cure the failure after being given written notice of the failure and a reasonable opportunity, which in no event need be more than 30 days, to cure the failure.
- D. A provision that permits us to refuse to renew a franchise without fairly compensating you by repurchase or other means for the fair market value at the time of expiration of your inventory, supplies, equipment, fixtures and furnishings. Personalized materials that have no value to us and inventory, supplies, equipment, fixtures and furnishings not reasonably required in the conduct of the franchise
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, Michigan law prohibits certain unfair provisions that might appear in franchise documents. Specifically, Deck Medic cannot enforce a requirement that a franchisee assent to a release, assignment, novation, waiver, or estoppel that deprives them of rights and protections provided under the Michigan Franchise Investment Law. However, after entering into a Franchise Agreement, a franchisee is not precluded from settling any and all claims.
This means that while Deck Medic's standard franchise agreement might contain clauses that seem to waive a franchisee's rights, these clauses are void and unenforceable in Michigan to the extent that they conflict with the Michigan Franchise Investment Law. This protection ensures that franchisees in Michigan retain their legal rights and protections under state law.
For a prospective Deck Medic franchisee in Michigan, this is a crucial safeguard. It prevents Deck Medic from using the franchise agreement to force a franchisee into giving up their legal rights. However, it's important to note that this does not prevent a franchisee from independently settling claims after the franchise agreement is signed. Franchisees should consult with an attorney to fully understand their rights and obligations under Michigan law and the franchise agreement.