In Michigan, under what conditions can Kidokinetics terminate a franchise agreement prior to its expiration?
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 the 2024 Kidokinetics Franchise Disclosure Document, Michigan law has specific stipulations regarding the termination of a franchise agreement before its term expires. These stipulations aim to protect franchisees from unfair practices.
Specifically, a provision allowing Kidokinetics to terminate a franchise before its expiration is void and unenforceable unless there is "good cause." The definition of "good cause" includes the 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. This opportunity to cure the failure must be provided, and in no event needs to be more than 30 days. This means that Kidokinetics cannot immediately terminate the agreement without giving the franchisee a chance to rectify the non-compliance within a reasonable timeframe, up to 30 days.