In Michigan, can Deer Solution refuse to renew a franchise on terms generally available to other franchisees?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 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.
- 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, certain provisions that might appear in franchise documents are prohibited in the state of Michigan. Specifically, the FDD states that any provision that allows Deer Solution to terminate a franchise before the expiration of its term, unless there is good cause, is void and cannot be enforced against the franchisee.
This means that Deer Solution cannot arbitrarily refuse to renew a franchise agreement if the franchisee has not violated the terms of the agreement or otherwise given "good cause" for termination. This protection ensures that franchisees in Michigan are not subject to unfair or premature termination of their franchise agreements.
For a prospective Deer Solution franchisee in Michigan, this amendment offers a degree of security, ensuring that their investment and efforts are protected against termination without a valid reason. It is important for franchisees to understand what constitutes "good cause" for termination, as defined in the franchise agreement, to ensure they remain in compliance and can successfully renew their franchise.