In Michigan, what is the maximum cure period Learningrx must provide a franchisee for failing to comply with the Franchise Agreement?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.1 Termination by Franchisor.
Subject to applicable law to the contrary, Franchisor may, at its option, terminate this Agreement before its expiration as set forth below:
- (a) With Notice of Thirty (30) Days.
This Agreement will terminate thirty (30) days after Franchisor gives written notice to Franchisee and Franchisee fails to cure the defect within the thirty (30) day period, in the event that:
(i) Franchisee fails or refuses to maintain and operate the Business in compliance with this Agreement, the System, or the Operations Manual;
(ii) Franchisee fails to pay Franchisor or its affiliates or suppliers for obligations under this Agreement;
(iii) Franchisee fails to comply with any material federal, state, or local law or regulation applicable to the operation of the Business;
(iv) Franchisee fails to open the Business within nine (9) months from the Effective Date of this Agreement; or
(v) Franchisee is in breach of any other term, condition, or provision of this Agreement.
(b) Without Notice.
This Agreement and license will immediately terminate without notice in the event that:
(vi) Franchisee misrepresented or omitted material facts which induced Franchisor to enter into this Agreement;
(vii) Franchisee fails to complete the required initial training or has failed to designate an acceptable site pursuant to Section 10;
(viii) Franchisee fails to obtain all required licenses, permits or certifications, or to hire the required licensed professionals to operate the Business within six months of signing this Agreement.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, if you are a franchisee in Michigan, Learningrx may terminate the agreement if you fail to cure a defect within a 30-day period after receiving written notice. This 30-day cure period applies if the franchisee fails to maintain and operate the business in compliance with the agreement, the system, or the operations manual; fails to pay obligations; fails to comply with laws or regulations; fails to open the business within nine months; or breaches any other term of the agreement.
However, the agreement can be terminated immediately without notice if the franchisee misrepresented facts, fails to complete training, fails to obtain necessary licenses, permits, or certifications within six months of signing the agreement.
It is important for a prospective Learningrx franchisee in Michigan to understand the specific conditions under which they would be granted a cure period to remedy a breach of the franchise agreement, as well as the conditions that would allow Learningrx to terminate the agreement without any opportunity to cure the breach.