Under what conditions can Dryer Vent Squad terminate a franchise agreement before its expiration in Michigan?
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, a Michigan FDD Amendment specifies the conditions under which Dryer Vent Squad can terminate a franchise agreement before its expiration. The amendment states that Dryer Vent Squad can only terminate the franchise agreement before its term expires if there is 'good cause'.
'Good cause' is defined as the franchisee's failure to comply with any lawful provision of the Franchise Agreement. Furthermore, Dryer Vent Squad must provide the franchisee with written notice of the failure and a reasonable opportunity to correct the failure.
The amendment specifies that the opportunity to cure the failure does not need to be more than 30 days. This means that if a Dryer Vent Squad franchisee in Michigan fails to comply with a lawful provision of the franchise agreement, they have a maximum of 30 days to correct the issue after receiving written notice from Dryer Vent Squad. If the franchisee fails to cure the issue within this timeframe, Dryer Vent Squad has grounds to terminate the agreement.