In Michigan, under what conditions can Embassy Suites terminate a franchise agreement before its expiration?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) A provision that permits a franchisor to terminate a franchise prior to the expiration of its 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 thereof and a reasonable opportunity, which in no event need be more than 30 days, to cure such failure.
Source: Item 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, Michigan law places specific restrictions on the ability of Embassy Suites to terminate a franchise agreement early. These restrictions are designed to protect franchisees from unfair termination.
In Michigan, Embassy Suites can only terminate a franchise agreement before its term expires if there is "good cause." According to the FDD, good cause includes the franchisee's failure to comply with any lawful provision of the Franchise Agreement. However, even if a franchisee fails to comply, Embassy Suites must provide the franchisee with written notice of the failure and a reasonable opportunity to correct it. The FDD specifies that this cure period need not be more than 30 days.
This provision ensures that Embassy Suites franchisees in Michigan have the chance to rectify any issues before facing termination, providing a safeguard against arbitrary or unfair decisions by the franchisor. This is a fairly standard protection for franchisees, as many states have laws preventing termination without cause and requiring a notice and cure period.