In Michigan, what items is Mr. Sandless NOT required to compensate a franchisee for upon non-renewal of a franchise?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
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:
- (a) A prohibition on the right of a franchisee to join an association of franchises.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 30–34)
What This Means (2025 FDD)
The 2025 Mr. Sandless Franchise Disclosure Document includes a disclosure required by the state of Michigan. This disclosure indicates that Michigan prohibits certain unfair provisions that are sometimes included in franchise documents. According to the FDD, if any of the listed provisions are present in the Mr. Sandless franchise documents, they are considered void and cannot be enforced against the franchisee.
One specific provision that Michigan law prohibits is any restriction on a franchisee's right to join an association of franchisees. This means Mr. Sandless cannot legally prevent a franchisee in Michigan from joining or forming a franchisee association. Such associations can provide franchisees with collective bargaining power, shared resources, and a platform for addressing concerns with the franchisor.
However, the provided FDD excerpts do not specify what items Mr. Sandless is NOT required to compensate a franchisee for upon non-renewal of a franchise in Michigan. For example, the FDD does not detail whether Mr. Sandless is obligated to compensate for goodwill, inventory, or other investments if the franchise agreement is not renewed. A prospective franchisee should seek clarification from Mr. Sandless regarding compensation policies upon non-renewal to fully understand their rights and potential financial implications in Michigan.