In Michigan, can a Kidokinetics franchisee be required to assent to a waiver that deprives them of rights and protections under the Michigan Franchise Act?
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.
Source: Item 23 — RECEIPT (FDD pages 59–205)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, Michigan law protects franchisees from certain unfair provisions. Specifically, any requirement that a franchisee assent to a release, assignment, novation, waiver, or estoppel that deprives them of rights and protections under the Michigan Franchise Act is void and unenforceable. However, this does not prevent a franchisee from settling claims after entering into the Franchise Agreement. This protection ensures that Kidokinetics franchisees in Michigan cannot be forced to give up their legal rights under the state's franchise laws through waivers or similar clauses in the franchise documents.
This provision is designed to safeguard franchisees from overreaching by the franchisor. It ensures that franchisees retain their rights and protections under the Michigan Franchise Act, preventing Kidokinetics from enforcing waivers that would strip these rights away. The exception for settling claims after entering the agreement allows franchisees the flexibility to resolve disputes without being bound by pre-existing waivers.
For a prospective Kidokinetics franchisee in Michigan, this means that any clause in the franchise agreement requiring them to waive their rights under the Michigan Franchise Act is not enforceable. They retain the full protections afforded by Michigan law. However, they can still enter into settlements or agreements to resolve specific disputes after the franchise agreement is in effect.