In Michigan, can Goldfish Swim School require a franchisee to resell items that are not uniquely identified with Goldfish Swim School?
Goldfish_Swim_School 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.
- A prohibition of your right to join an association of Franchisees.
- A requirement that you assent to a release, assignment, novation, waiver or estoppel that deprives you of rights and protections provided in this act. This shall not preclude you, after entering into a Franchise Agreement, from settling any and all claims.
- 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.
- A provision that permits us to refuse to renew a franchise without fairly compensating you by repurchase or other means for the fair market value at the time of expiration of your inventory, supplies, equipment, fixtures and furnishings. Personalized materials that have no value to us and inventory, supplies, equipment, fixtures and furnishings not reasonably required in the conduct of the Franchised Swim School are not subject to compensation. This subsection applies only if: (a) the term of the franchise is less than 5 years, and (b) you are prohibited by the franchise agreement 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 you do not receive at least 6 months advance notice of our intent not to renew the franchise.
- A provision that permits us 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.
Source: Item 22 — CONTRACTS (FDD pages 76–77)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School FDD, Michigan law includes specific stipulations regarding franchise agreements to protect franchisees from unfair provisions. Specifically, the FDD states that certain provisions are prohibited and considered void if included in the franchise documents.
One such prohibited provision is any requirement that deprives the franchisee of rights and protections provided under Michigan's franchise regulations. This includes any requirement for the franchisee to assent to a release, assignment, novation, waiver, or estoppel that would undermine these rights. This protection ensures that franchisees are not forced into agreements that strip them of their legal safeguards under Michigan law.
However, the FDD does not explicitly address whether Goldfish Swim School can require a franchisee to resell items not uniquely identified with the brand. A prospective franchisee should seek clarification from Goldfish Swim School regarding any requirements to sell specific items, whether branded or unbranded, and ensure that such requirements do not conflict with the protections afforded to them under Michigan franchise law.