What specific unfair provisions related to franchise documents are prohibited in the state of Michigan regarding Focus Cfo?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
THE MARYLAND NOTICE APPLIES ONLY TO FRANCHISEES WHO ARE RESIDENTS OF MARYLAND OR LOCATE THEIR FRANCHISES IN MARYLAND.
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 prohibits certain unfair provisions that are sometimes included in franchise agreements. If any of these provisions are present in the Focus Cfo franchise documents, they are considered void and unenforceable against the franchisee.
Specifically, Focus Cfo cannot enforce provisions that: prohibit a franchisee from joining a franchisee association; require a franchisee to sign a release, assignment, novation, waiver, or estoppel that deprives them of rights and protections under the Michigan Franchise Investment Law (though franchisees can still settle claims after entering the agreement); allow Focus Cfo to terminate the franchise before its expiration without good cause (which includes failure to comply with the agreement, provided the franchisee has a reasonable opportunity, up to 30 days, to cure the failure).
Additionally, Focus Cfo cannot refuse to renew a franchise without fairly compensating the franchisee for the fair market value of their inventory, supplies, equipment, fixtures, and furnishings at the time of expiration. This only applies if the franchise term is less than 5 years and the franchisee is prohibited from continuing a similar business in the same area under a different brand after the franchise expires, or if the franchisee does not receive at least 6 months' notice of non-renewal. Focus Cfo also cannot refuse to renew a franchise on terms not generally available to other franchisees in similar circumstances, although a renewal provision is not required. Finally, any provision requiring arbitration or litigation to be conducted outside of Michigan is prohibited, unless the franchisee agrees to it.