In Michigan, does Mr. Sandless have a right of first refusal to purchase the assets of a Mr. Sandless franchise?

According to the 2025 Mr. Sandless Franchise Disclosure Document, Michigan law addresses the franchisor's right of first refusal. Specifically, Michigan law prohibits certain unfair provisions that are sometimes included in franchise documents. One such provision relates to the franchisor's right to purchase a franchise.

Specifically, Michigan law states that franchise documents cannot be enforced against a franchisee if they contain a provision that requires the franchisee to resell to the franchisor items that are not uniquely identified with the franchisor. However, this does not prohibit a provision that grants Mr. Sandless a right of first refusal to purchase the assets of a franchise on the same terms and conditions as a bona fide third party willing and able to purchase those assets. It also does not prohibit a provision that grants Mr. Sandless the right to acquire the assets of a franchise for the market or appraised value of such assets if the franchisee has breached the lawful provisions of the franchise agreement and has failed to cure the breach.

In summary, Mr. Sandless is permitted to have a right of first refusal to purchase a franchise in Michigan under certain conditions, namely if it matches a third-party offer or if the franchisee has breached the agreement. This is a fairly typical arrangement in franchising, allowing the franchisor to maintain control over the brand and its franchisees.