In Michigan, what constitutes 'good cause' for Dryer Vent Squad to terminate a franchise agreement?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
- C. A provision that permits us to terminate a franchise before the expiration of this term except for good cause. Good cause shall include your failure to comply with any lawful provision of the Franchise Agreement and to cure the failure after being given written notice of the failure and a reasonable opportunity, which in no event need be more than 30 days, to cure the failure.
Source: Item 23 — RECEIPTS (FDD pages 51–207)
What This Means (2024 FDD)
According to the 2024 Dryer Vent Squad Franchise Disclosure Document, in the state of Michigan, 'good cause' for termination includes a franchisee's failure to comply with any lawful provision of the Franchise Agreement.
This failure must be addressed through written notice, giving the franchisee a reasonable opportunity to correct the issue. The amendment specifies that this cure period need not exceed 30 days. This means that if a Dryer Vent Squad franchisee in Michigan violates a term of their agreement, Dryer Vent Squad must provide written notice and at least a reasonable opportunity (up to 30 days) to fix the problem before terminating the agreement.
This provision protects Michigan Dryer Vent Squad franchisees by preventing termination for minor or easily correctable infractions without a chance to remedy the situation. It also sets a clear expectation for both the franchisor and franchisee regarding the process for addressing breaches of contract.