In Michigan, is a Deer Solution franchisee prohibited from continuing to conduct substantially the same business under another trademark in the same area after the franchise expires?
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)
The 2025 Deer Solution Franchise Disclosure Document includes an amendment specific to Michigan, stating that certain unfair provisions sometimes found in franchise documents are void and cannot be enforced against the franchisee. These include any requirement that the franchisee assent to a release or waiver that deprives them of rights and protections under Michigan franchise law. However, the FDD does not explicitly address whether a Deer Solution franchisee in Michigan is prohibited from conducting a similar business under a different trademark after the franchise agreement expires.
Item 17.B outlines obligations upon expiration or termination, stating that the franchisee must cease operating the Deer Solution business under the System, refrain from representing themselves as a former franchisee, and cease using the System, Confidential Information, Licensed Marks, and System Supplies. These clauses suggest restrictions on continuing a similar business, but the Michigan amendment may impact their enforceability.
Because the FDD does not directly address the enforceability of non-compete clauses or restrictions on operating a similar business under a different trademark in Michigan after the franchise term, prospective franchisees should seek clarification from Deer Solution regarding the specific enforceability of these provisions in Michigan, given the state's franchise law amendment. It would be prudent to consult with a legal professional experienced in franchise law in Michigan to fully understand their rights and obligations upon termination or expiration of the Deer Solution franchise agreement.