In Michigan, can a Kidokinetics franchise agreement require arbitration or litigation to be conducted outside of Michigan?

According to Kidokinetics's 2024 Franchise Disclosure Document, a franchise agreement cannot require arbitration or litigation to be conducted outside the state of Michigan. However, a franchisee is not precluded from entering into an agreement, at the time of arbitration, to conduct arbitration at a location outside of Michigan.

This means that while the initial franchise agreement cannot mandate out-of-state arbitration or litigation, a Kidokinetics franchisee can later agree to it if they choose. This provision protects franchisees from being forced into distant legal proceedings at the outset of the agreement.

This type of clause is included to comply with Michigan franchise law, which aims to protect franchisees within the state. Prospective Kidokinetics franchisees in Michigan should be aware of this protection and understand their right to refuse out-of-state arbitration or litigation unless they later consent to it.