In Michigan, can Deer Solution refuse a transfer of ownership of a Deer Solution franchise without good cause?
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 prohibits certain unfair provisions that are sometimes found in franchise documents. Specifically, in Michigan, a provision that permits Deer Solution to terminate a franchise before the expiration of its term is void and cannot be enforced against the franchisee, unless there is good cause for the termination.
This means that Deer Solution cannot arbitrarily refuse a transfer of ownership without a valid reason. The FDD outlines examples of what constitutes "good cause," such as the proposed transferee failing to meet Deer Solution's qualifications, being a competitor, or being unwilling to comply with obligations.
For a prospective Deer Solution franchisee in Michigan, this amendment provides some protection against potentially unfair termination or transfer restrictions. It ensures that Deer Solution must have a legitimate reason to deny a transfer, which can offer more security and flexibility for the franchisee's investment and exit strategy.