In Michigan, what constitutes 'good cause' for Kidokinetics to terminate a franchise agreement?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
l payments by franchisees that purchase multiple franchises shall be deferred until the first franchise opens.
FRANCHISOR: KIDOKINETICS FRANCHISE LLC Entity name (if any) _ Date:
MICHIGAN
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.
Each of the following provisions is void and unenforceable if contained in any documents relating to a franchise:
- (a) A prohibition on your right to join an association of franchisees.
- (b) A requirement that you assent to a release, assignment, novation, waiver, or estoppel which deprives you of rights and protections provided in this act.
Source: Item 23 — RECEIPT (FDD pages 59–205)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, Michigan law dictates specific conditions under which Kidokinetics can terminate a franchise agreement. These conditions are designed to protect franchisees from unfair termination.
Specifically, Kidokinetics can only terminate a franchise agreement before its expiration if there is 'good cause.' According to the FDD, 'good cause' includes a franchisee's failure to comply with any lawful provision of the Franchise Agreement. However, even if a franchisee fails to comply, Kidokinetics must provide written notice of the failure and allow a reasonable opportunity to correct the issue. The 'reasonable opportunity' to cure the failure does not have to be more than 30 days.
This stipulation ensures that Kidokinetics franchisees in Michigan are afforded certain rights and protections against arbitrary or unfair termination, aligning with the state's regulations on franchise agreements. Prospective franchisees should carefully review the Franchise Agreement to understand their obligations and the specific conditions that could lead to termination, as well as the cure periods allowed.