In Michigan, can Deer Solution require a franchisee to resell items that are not uniquely identified with Deer Solution?

According to Deer Solution's 2025 Franchise Disclosure Document, Michigan law includes specific protections for franchisees. One such protection, as outlined in the Michigan FDD Amendment, states that Deer Solution cannot require a franchisee to resell items that are not uniquely identified with them. This provision aims to prevent franchisors from unfairly burdening franchisees with unwanted inventory buybacks. However, there are exceptions to this rule. Deer Solution retains the right of first refusal to purchase the assets of a franchise if a third party makes a legitimate offer. Additionally, Deer Solution can acquire the assets of a franchise at market or appraised value if the franchisee has failed to correct a breach of the Franchise Agreement as described in Item 17(g).

This protection is significant for prospective Deer Solution franchisees in Michigan. It ensures that they will not be forced to repurchase items that do not carry the Deer Solution brand, safeguarding them from potential financial losses associated with unwanted inventory. This provision does not prevent Deer Solution from having a right of first refusal or acquiring assets at market value under specific circumstances, such as a third-party offer or a breach of contract by the franchisee.

It is important for potential Deer Solution franchisees in Michigan to understand the scope and limitations of this protection. While Deer Solution cannot mandate the resale of non-branded items, they do retain certain rights to purchase franchise assets under specific conditions. Franchisees should carefully review the Franchise Agreement and the Michigan FDD Amendment to fully understand their rights and obligations.