In Michigan, what constitutes 'good cause' for Goldfish Swim School to terminate a franchise agreement?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
- A provision that permits us to terminate a franchise prior to the expiration of this term except for good cause. Good cause shall include your failure 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.
Source: Item 22 — CONTRACTS (FDD pages 76–77)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School Franchise Disclosure Document, Michigan law impacts the conditions under which Goldfish Swim School can terminate a franchise agreement. Specifically, the brand can only terminate a franchise agreement before its expiration if there is 'good cause'.
'Good cause' is defined as the franchisee's failure to comply with any lawful provision within the Franchise Agreement. However, Goldfish Swim School must provide the franchisee with written notice of the failure and a reasonable opportunity to correct the issue.
Notably, the 'reasonable opportunity' to cure the failure does not have to exceed 30 days. This means that if a franchisee violates a term of the agreement, Goldfish Swim School is required to give them written notice and at least some chance to fix the problem, but that cure period can be as short as the franchisor deems reasonable, up to a maximum of 30 days.