In Michigan, what is the impact of the state law on provisions in the Focus Cfo franchise documents?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
FOR THE STATE OF MICHIGAN
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- 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.
- o A prohibition of the right of a franchisee to join an association of franchisees.
- o A requirement that a franchisee assent to a release, assignment, novation, waiver or estoppel that deprives a franchisee of rights and protections provided in this act. This shall not preclude a franchisee, after entering into a Franchise Agreement, from settling any and all claims.
- o A provision that permits a franchisor to terminate a franchise before the expiration of this 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 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.
- o A provision that permits a franchisor to refuse to renew a franchise without fairly compensating the franchisee by repurchase or other means for the fair market value at the time of expiration of the franchisee's inventory, supplies, equipment, fixtures and furnishings. Personalized materials that have no value to the franchisor and inventory, supplies, equipment, fixtures and furnishings not reasonably required in the conduct of the franchised restaurant are not subject to compensation. This subsection applies only if: (a) the term of the franchise is less than 5 years, and (b) the franchisee is prohibited by the franchise or other agreement from continuing to conduct substantially the same business under another trademark, service mark, trade name, logotype, advertising or other commercial symbol in the same area subsequent to the expiration of the franchise or the franchisee does not receive at least 6 months advance notice of franchisor's intent not to renew the franchise.
- o A provision that permits the franchisor to refuse to renew a franchise on terms generally available to other franchisees of the same class or type under similar circumstances. This section does not require a renewal provision.
- o A provision requiring that arbitration or litigation be conducted outside this state. This shall not preclude the franchisee from entering into an
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, Michigan state law has specific stipulations that render certain provisions within the franchise documents void and unenforceable if they are included. These provisions relate to franchisee rights and the franchisor's ability to enforce certain terms.
Specifically, Focus Cfo cannot enforce provisions that: prohibit a franchisee from joining a franchisee association; require a franchisee to waive rights or protections under the act (though franchisees can settle claims after entering the agreement); allow Focus Cfo to terminate the franchise before its term expires without good cause (defined as failure to comply with the agreement, with a reasonable cure period of no more than 30 days); permit Focus Cfo to refuse renewal without fairly compensating the franchisee for the fair market value of inventory, supplies, equipment, fixtures, and furnishings (with certain exceptions for personalized materials or items not reasonably required, and only if the franchise term is less than 5 years and the franchisee is restricted from similar business activities afterward or does not receive at least 6 months' notice of non-renewal); allow Focus Cfo to refuse renewal on terms not generally available to other franchisees in similar circumstances; or require arbitration or litigation to occur outside of Michigan.
These stipulations ensure that Focus Cfo franchisees in Michigan are afforded certain protections under state law, preventing the franchisor from imposing unduly restrictive or unfair terms. Prospective franchisees should carefully review the franchise agreement to ensure compliance with these Michigan-specific provisions and understand their rights under state law.