Under what conditions can Mr. Sandless terminate a franchise prior to the expiration of its term?
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:
- (c) A provision that permits a franchisor to terminate a franchise prior to the expiration of its term except for good cause.
Good cause shall include the failure of the franchisee to comply with any lawful provision of the franchise agreement and to cure such failure after being given written notice thereof and a reasonable opportunity, which in no event need be more than thirty (30) days, to cure such failure.
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 franchisees are protected from franchise termination prior to the expiration of the franchise term, except for good cause. Good cause includes the franchisee's failure to comply with any lawful provision of the franchise agreement.
For Mr. Sandless franchisees, "good cause" requires that the franchisee receives written notice of the failure to comply with the franchise agreement and is given a reasonable opportunity to correct the failure. The cure period does not have to be more than 30 days.
This provision ensures that Mr. Sandless franchisees in Michigan have some protection against arbitrary termination, requiring the franchisor to have a legitimate reason and provide an opportunity to correct any issues before terminating the agreement. This is a fairly standard protection in franchising, as many states have laws to prevent franchisors from unfairly terminating franchise agreements.