factual

Can Deck Medic refuse to renew a franchise agreement?

Deck_Medic Franchise · 2024 FDD

Answer from 2024 FDD Document

ught within three years after the grant of the franchise.

  • D. The Franchise Agreement provides for termination upon bankruptcy. This provision may not be enforceable under federal bankruptcy law (11 U.S.C. Section 101, et seq.).
  • E. No statement, questionnaire or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of: (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.

Michigan FDD Amendment Amendments to the Deck Medic Franchise Disclosure Document

    1. 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

business are not subject to compensation. This subsection applies only if: (a) the term of the franchise is less than five years, and (b) you are prohibited by the franchise agreement or other agreement from continuing to conduct substantially the same business under another trademark, service mark, trade name, logotype, advertising or other commercial symbol in the same area subsequent to the expiration of the franchise or you do not receive at least six months advance notice of our intent not to renew the franchise.

  • E. A provision that permits us 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.
  • F. A provision requiring that litigation be conducted outside this state.

Source: Item 23 — RECEIPTS (FDD pages 43–228)

What This Means (2024 FDD)

According to the 2024 Deck Medic Franchise Disclosure Document, the franchisor's ability to refuse renewal of a franchise agreement is subject to certain state laws. In Michigan, Deck Medic cannot refuse to renew a franchise on terms not generally available to other franchisees of the same class or type under similar circumstances. Michigan franchise law does not require a renewal provision, but if Deck Medic does refuse to renew, they may be required to fairly compensate the franchisee for the fair market value of inventory, supplies, equipment, fixtures, and furnishings, excluding personalized materials or items not reasonably required for the business, 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.

In Minnesota, state law provides franchisees with specific termination and non-renewal rights, requiring Deck Medic to give 180 days' notice of nonrenewal, except in certain specified cases. Similarly, in Washington, the Washington Franchise Investment Protection Act and court decisions may supersede the franchise agreement regarding termination and renewal.

For franchisees in North Dakota, provisions requiring them to sign a general release upon renewal or consenting to termination or liquidated damages are not enforceable. These amendments highlight the importance of understanding state-specific franchise laws, as they can significantly impact the terms and conditions of franchise renewal and the rights of franchisees.

Disclaimer: This information is extracted from the 2024 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.