In Michigan, does the law require Mr. Sandless to offer a renewal provision in the franchise agreement?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
DISCLOSURE REQUIRED BY THE STATE OF MICHIGAN
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)
According to Mr. Sandless's 2025 Franchise Disclosure Document, Michigan law does not require Mr. Sandless to include a renewal provision in its franchise agreement. However, the document does state that Michigan prohibits certain unfair provisions that are sometimes found in franchise documents, and if any of these provisions are present, they are void and cannot be enforced against the franchisee. One such prohibited provision is a restriction on the franchisee's right to join an association of franchisees.
While Michigan law doesn't mandate a renewal option, Mr. Sandless's standard franchise agreement, as detailed in the FDD, does include renewal terms. Specifically, if a franchisee has complied with the agreement and meets certain conditions, they may be able to enter into a successor franchise agreement for two additional 5-year terms.
It is important for prospective franchisees in Michigan to carefully review the franchise agreement and disclosure document to understand their rights and obligations, and to be aware of the provisions that Michigan law deems unenforceable. Consulting with an attorney experienced in franchise law is advisable to ensure full comprehension of the legal implications.