In Michigan, what are some examples of 'good cause' for Learningrx to refuse a transfer of a Learningrx franchise?

The 2025 Learningrx Franchise Disclosure Document (FDD) does not provide specific examples of what constitutes 'good cause' for Learningrx to refuse a franchise transfer in the state of Michigan. The document includes a Michigan-specific receipt acknowledging that the franchisee has read the addendum, but it does not elaborate on transfer conditions or restrictions. The Multi-State Addendum also does not list any specific modifications or stipulations related to franchise transfers or 'good cause' within Michigan. Therefore, the FDD does not define what actions or circumstances Learningrx would consider as justifiable reasons to deny a transfer request from a franchisee in Michigan.

However, the FDD does outline general conditions that must be met for a transfer to be approved. These include settling all outstanding accounts with Learningrx, executing a general release of claims, paying a transfer fee (typically $10,000, but $5,000 for transfers to another Learningrx franchisee), and ensuring the transferee executes the current franchise agreement and completes the training program, which involves an Initial Training and Materials Fee of $10,000 (or $6,000 for existing franchisees). The transferee must also provide a personal guarantee. While these are conditions for transfer, they do not define 'good cause' for refusal.

To fully understand what Learningrx considers 'good cause' for denying a transfer in Michigan, a prospective franchisee should ask Learningrx directly for clarification. This information is crucial for anyone considering purchasing a Learningrx franchise in Michigan, as it will help them understand their rights and obligations regarding the potential future sale of their franchise.