Under what conditions can Dryer Vent Squad terminate a franchise in Michigan before the expiration of its term?
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, Michigan franchisees have specific protections regarding franchise termination. Dryer Vent Squad can only terminate a franchise agreement before its expiration if there is "good cause." This "good cause" is explicitly defined as the franchisee's failure to comply with any lawful provision of the Franchise Agreement.
However, even if a franchisee fails to comply with the agreement, Dryer Vent Squad must provide written notice of the failure. The franchisee then has a reasonable opportunity to correct the failure. The FDD specifies that this cure period need not be more than 30 days.
This amendment ensures that Dryer Vent Squad cannot arbitrarily terminate a franchise in Michigan without a legitimate reason and without giving the franchisee a chance to rectify the issue. This is a standard protection for franchisees, ensuring fairness and preventing premature termination based on minor or easily correctable infractions.