factual

In Michigan, what constitutes 'good cause' for Learningrx to terminate a franchise agreement?

Learningrx Franchise · 2025 FDD

Answer from 2025 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 Development Agreement and to cure such failure after being given written notice thereof and a reasonable opportunity, which in no event need be more than thirty (30) days, to cure such failure.

Source: Item 23 — RECEIPT (FDD pages 54–209)

What This Means (2025 FDD)

According to Learningrx's 2025 Franchise Disclosure Document, in Michigan, 'good cause' for terminating a franchise agreement includes a franchisee's failure to comply with any lawful provision of the Franchise Agreement and Development Agreement. However, Learningrx must provide the franchisee with written notice of the failure and a reasonable opportunity to correct it. The FDD specifies that this cure period need not be more than thirty (30) days.

This means that Learningrx cannot terminate a franchise agreement without first giving the franchisee a chance to fix any issues, unless the agreement specifies a shorter cure period. This protection is designed to prevent Learningrx from unfairly terminating agreements for minor infractions without giving franchisees a fair chance to rectify the situation.

This provision is common in franchise agreements to balance the rights and responsibilities of both the franchisor and franchisee. It ensures that Learningrx franchisees in Michigan have some recourse if Learningrx attempts to terminate the agreement, provided they address the identified issues within the given timeframe. Prospective franchisees should carefully review the Franchise Agreement and Development Agreement to understand all the provisions and potential causes for termination.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.