Under what conditions can Dog Haus terminate a franchise agreement in Michigan before its expiration?
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, specifically the Michigan Addendum, there are limitations on the franchisor's ability to terminate a franchise agreement before its expiration in Michigan. A provision that allows Dog Haus to terminate the franchise prior to the expiration of its term is void and unenforceable unless there is 'good cause'.
'Good cause' is defined as the franchisee's failure to comply with any lawful provision of the franchise agreement. Furthermore, Dog Haus must provide the franchisee with written notice of the failure and a reasonable opportunity to cure it. The opportunity to cure cannot exceed 30 days. This addendum ensures that Michigan franchisees have additional protections against potentially unfair termination practices.
This stipulation is important for prospective Dog Haus franchisees in Michigan as it provides a safeguard against arbitrary or premature termination of their franchise agreement. It ensures that Dog Haus can only terminate the agreement if the franchisee fails to meet the obligations outlined in the agreement, and only after providing a fair opportunity to rectify the situation. This protection aligns with the Michigan Franchise Investment Act, which aims to protect franchisees' rights.