In Michigan, can Dog Haus refuse to renew a franchise on terms generally available to other franchisees?
Dog_Haus 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.
Each of the following provisions is void and unenforceable if contained in any documents related to a franchise:
- C.
A provision that permits a franchisor to terminate a franchise prior to the expiration of this term except for good cause.
Good cause shall include the failure of the franchisee to comply with any lawful provision of the franchise agreement and to cure such failure after being given written notice and a reasonable opportunity, which will not be more than 30 days, to cure such failure.
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, Michigan law includes specific protections for franchisees. One such protection is that certain unfair provisions sometimes found in franchise documents are prohibited and unenforceable in Michigan.
Specifically, if the Dog Haus franchise agreement contains a provision that allows Dog Haus to terminate the franchise before the end of its term without good cause, that provision is void and cannot be enforced against the franchisee in Michigan. Good cause is defined as the franchisee's failure to comply with a lawful provision of the franchise agreement, provided they are given written notice and a reasonable opportunity (up to 30 days) to correct the failure.
This addendum ensures that Michigan Dog Haus franchisees are not subject to arbitrary or unfair termination clauses, providing them with rights and protections under the Michigan Franchise Investment Act. It is important for prospective franchisees in Michigan to carefully review the franchise agreement and understand their rights under state law, as outlined in the Michigan Addendum.