In Michigan, can a Jack In The Box franchisee be prohibited from joining an association of franchisees?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
DIFFERENT RULES, LLC DEVELOPER
MICHIGAN DISCLOSURE ADDENDUM
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) A PROHIBITION ON THE RIGHT OF A FRANCHISEE TO JOIN AN ASSOCIATION OF FRANCHISEES.
Source: Item 22 — CONTRACTS (FDD page 94)
What This Means (2025 FDD)
According to the 2025 Jack In The Box Franchise Disclosure Document, Michigan law prohibits franchise agreements from containing certain unfair provisions. Specifically, a Jack In The Box franchise agreement cannot include a provision that prohibits a franchisee from joining an association of franchisees. This protection is explicitly stated in the Michigan Disclosure Addendum.
This means that if a Jack In The Box franchise agreement contains a clause that restricts a franchisee's right to join an association, that clause is void and unenforceable in Michigan. The state law takes precedence over any conflicting terms in the franchise agreement, ensuring that franchisees can freely associate with one another.
For a prospective Jack In The Box franchisee in Michigan, this is a significant benefit. It allows them to connect with other franchisees, share information, and collectively address issues with the franchisor. Franchisee associations can provide valuable support, advocacy, and a stronger voice in the franchise system. This protection ensures that franchisees are not isolated and can work together to protect their interests.