In Michigan, can Learningrx refuse to renew a Learningrx franchise on terms not generally available to other franchisees of the same class?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are a franchisee in any of the following states, please do not answer Questions 4 or 11 – 15, as such questions are not applicable to you: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
The 2025 Learningrx Franchise Disclosure Document (FDD) includes an addendum that franchisees in Michigan, along with several other states, are not required to answer questions 4 or 11-15 in the New Franchisee Disclosure Questionnaire. However, the document does not explicitly address whether Learningrx can refuse to renew a franchise in Michigan on terms not generally available to other franchisees of the same class.
While the FDD provides information on Learningrx's general renewal terms, including the conditions under which Learningrx may refuse a renewal, it does not specify whether these terms can be applied differently to franchisees in Michigan compared to those in other states or whether Michigan law affects Learningrx's renewal policies. Section 3.3 outlines the conditions where Learningrx may refuse to grant a renewal term, such as failure to remedy a breach, committing multiple material breaches, failing to provide timely notice of intent to renew, or not being current on payment obligations.
A prospective Learningrx franchisee in Michigan should seek clarification from Learningrx regarding any state-specific regulations or provisions that may affect the renewal terms outlined in the franchise agreement. It would be prudent to consult with a franchise attorney in Michigan to understand their rights and any potential limitations on Learningrx's ability to impose non-standard renewal terms.