In Michigan, what are some examples of 'good cause' for Mrcool to refuse a transfer of ownership of a franchise?

According to Mrcool's 2025 Franchise Disclosure Document, there are several conditions that constitute 'good cause' for Mrcool to refuse a transfer of ownership in Michigan. These stipulations are in place to protect the integrity and standards of the Mrcool franchise system.

Specifically, Mrcool may refuse a transfer if the proposed transferee does not meet the company's current qualifications or standards. This ensures that any new franchisee is capable of maintaining the quality and service expected of a Mrcool franchise. Additionally, if the proposed transferee is a competitor of Mrcool or its sub-franchisor, the transfer can be denied to prevent potential conflicts of interest and protect Mrcool's competitive advantage. The refusal can also occur if the proposed transferee is unwilling to agree in writing to comply with all lawful obligations, ensuring adherence to the franchise agreement and relevant laws.

Furthermore, Mrcool can refuse a transfer if the current franchisee or the proposed transferee has failed to pay any sums due to Mrcool or has not cured any default in the Franchise Agreement at the time of the proposed transfer. This protects Mrcool's financial interests and ensures that all parties meet their contractual obligations. These conditions provide Mrcool with clear and justifiable reasons to refuse a transfer, safeguarding the brand and the interests of other franchisees within the system.