Under what circumstances does the compensation requirement upon non-renewal NOT apply to Deer Solution in Michigan?
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)
Based on the 2025 Deer Solution Franchise Disclosure Document, the amendment for Michigan states that certain unfair provisions sometimes found in franchise documents are prohibited and cannot be enforced against the franchisee. These provisions include a prohibition of the franchisee's right to join an association of franchisees and a requirement that the franchisee assent to a release, assignment, novation, waiver, or estoppel that deprives them of rights and protections.
Specifically, the Michigan FDD amendment indicates that any requirement for a franchisee to waive rights or protections provided by the act is void and unenforceable. This suggests that any compensation requirement upon non-renewal that effectively forces the franchisee to waive their rights would not be enforceable. However, this does not prevent a franchisee from settling claims after entering into a Franchise Agreement.
In practical terms, this means that Deer Solution franchisees in Michigan have certain protections against unfair provisions that might be present in the franchise agreement. If a provision regarding compensation upon non-renewal is structured in a way that it requires the franchisee to give up their legal rights, it would likely be deemed unenforceable under Michigan law. Prospective franchisees should consult with a legal professional to fully understand their rights and protections under Michigan franchise law.