In Michigan, what are some examples of 'good cause' for Deer Solution to refuse a transfer of ownership?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Amendments to the Deer Solution Franchise Disclosure 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.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, specifically the Michigan FDD Amendment, Michigan prohibits certain unfair provisions that are sometimes included in franchise documents. One such provision relates to the termination of a franchise before its expiration, which Deer Solution cannot do without 'good cause'.
While the amendment indicates that termination requires 'good cause', it does not define what constitutes 'good cause' within the context of franchise transfer. To fully understand what Deer Solution considers 'good cause' for refusing a transfer of ownership in Michigan, a prospective franchisee should consult the franchise agreement itself and seek clarification from Deer Solution on specific examples or scenarios that would be deemed 'good cause' for refusal.
Understanding the specific conditions that Deer Solution considers 'good cause' is crucial for a franchisee in Michigan to assess their rights and obligations regarding franchise transfer. This information would help a franchisee make informed decisions about the future of their franchise and avoid potential disputes with Deer Solution.