Does Extreme Art Studio have a right of first refusal to purchase a franchise in Michigan?

According to the 2024 Extreme Art Studio Franchise Disclosure Document, Extreme Art Studio has a right of first refusal to purchase a franchise in Michigan. Specifically, a Michigan law does not prevent Extreme Art Studio from exercising a right of first refusal to purchase the franchise.

This right of first refusal means that if a franchisee in Michigan wants to sell their Extreme Art Studio franchise, they must first offer the franchise to Extreme Art Studio on the same terms and conditions as any offer from a third-party buyer. Extreme Art Studio can then decide whether or not to purchase the franchise themselves.

This clause protects Extreme Art Studio's interests by allowing them to control who becomes a franchisee within their system. It also allows Extreme Art Studio to prevent a competitor from acquiring an existing franchise location. For a franchisee, this could potentially limit the pool of potential buyers if they decide to sell, as any sale is contingent on Extreme Art Studio declining their right of first refusal.