In Michigan, does the prohibition on requiring litigation outside the state preclude a Deer Solution franchisee from agreeing to conduct litigation outside the state at the time of litigation?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Michigan FDD Amendment
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 the 2025 Deer Solution Franchise Disclosure Document, Michigan law addresses certain provisions in franchise documents. Specifically, it states that any requirement forcing a franchisee to waive rights and protections provided by the act is void and unenforceable. However, this does not prevent a franchisee from settling claims after entering into the Franchise Agreement.
In practical terms, this means that while Deer Solution cannot initially require a Michigan franchisee to agree to out-of-state litigation or waive their rights under Michigan franchise law, the franchisee is not prohibited from voluntarily agreeing to these terms later on, such as during settlement negotiations or at the time of litigation. This provides some flexibility for resolving disputes while still protecting the franchisee's fundamental rights.
This type of provision is relatively common in franchise agreements, as many states have franchise-specific laws designed to protect franchisees from overreaching by franchisors. Prospective Deer Solution franchisees in Michigan should be aware of these protections and consult with an attorney to fully understand their rights and obligations under the Franchise Agreement and Michigan law.