In Michigan, what is the cure period allowed to a Kidokinetics franchisee who has breached the lawful provisions of the Franchise Agreement?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Each of the following provisions is void and unenforceable if contained in any documents relating to a franchise:
- (c) A provision that permits us to terminate a Franchise prior to the expiration of its term except for good cause. Good cause shall include your failure to comply with any lawful provision of the Franchise Agreement and to cure such failure after being given written notice thereof and a reasonable opportunity, which in no event need be more than 30 days, to cure such failure.
Source: Item 23 — RECEIPT (FDD pages 59–205)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, Michigan franchisees are entitled to a cure period of no less than 30 days to address any failure to comply with the lawful provisions of the Franchise Agreement. This protection is explicitly outlined in the Michigan addendum within the FDD, which states that any provision allowing termination for cause must provide a reasonable opportunity to cure the failure, and this period must be at least 30 days.
This stipulation is significant for prospective Kidokinetics franchisees in Michigan because it ensures they have a fair chance to rectify any breaches of the agreement before the franchise can be terminated. It aligns with the state's aim to protect franchisees from potentially unfair or overbearing franchisor actions. The 30-day minimum cure period offers a degree of security and time for franchisees to address and resolve issues, which can range from operational compliance to financial obligations.
It is important to note that while the cure period must be at least 30 days, the specific terms and conditions surrounding what constitutes a 'lawful provision' and the process for providing written notice are detailed in the Franchise Agreement itself. Franchisees should carefully review these sections to fully understand their rights and obligations. This Michigan-specific protection is a valuable aspect for franchisees to consider, as it provides a defined timeframe to correct any non-compliance issues, promoting a more balanced franchisor-franchisee relationship.