factual

In Michigan, can an Embassy Suites franchisee be prohibited from joining an association of franchisees?

Embassy_Suites Franchise · 2025 FDD

Answer 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.

  • (a) A prohibition on the right of a franchisee to join an association of franchisees.

Source: Item 23 — RECEIPTS (FDD pages 97–305)

What This Means (2025 FDD)

According to the 2025 Embassy Suites Franchise Disclosure Document, Michigan law protects a franchisee's right to join an association of franchisees. Specifically, the FDD states that any provision in the franchise documents that prohibits a franchisee from joining such an association is void and unenforceable in Michigan. This protection ensures that Embassy Suites franchisees in Michigan can freely associate with one another to discuss issues, negotiate terms, or otherwise advocate for their collective interests without fear of reprisal from the franchisor.

This provision is included in the Michigan Addendum to the Disclosure Document, highlighting the state's specific regulations regarding franchise agreements. The addendum explicitly states that certain unfair provisions, including those that prohibit a franchisee from joining an association, are not enforceable. This means that Embassy Suites cannot legally prevent its Michigan franchisees from forming or participating in a franchisee association.

For a prospective Embassy Suites franchisee in Michigan, this is a significant benefit. It allows them to connect with other franchisees, share experiences, and potentially gain collective bargaining power. It also provides a safeguard against potentially overbearing franchisor policies, as the association can act as a unified voice for the franchisees. This protection aligns with the broader goal of ensuring fair and equitable franchise relationships within the state of Michigan.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.