In Michigan, can Mrcool refuse to renew a franchise on terms not generally available to other franchisees of the same class?
Mrcool 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.
- B.
A requirement that you assent to a release, assignment, novation, waiver or estoppel that deprives you of rights and protections provided in this act.
This shall not preclude you, after entering into a Franchise Agreement, from settling any and all claims.
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to the 2025 Mrcool Franchise Disclosure Document, the state of Michigan prohibits certain unfair provisions that are sometimes included in franchise documents. Specifically, Mrcool cannot enforce a provision that requires a franchisee to assent to a release, assignment, novation, waiver, or estoppel that deprives them of rights and protections provided in the Michigan franchise law.
This means that Mrcool cannot present a Michigan franchisee with renewal terms that force them to give up their legal rights under Michigan franchise law as a condition of renewal. This protection ensures that Mrcool franchisees in Michigan are not pressured into accepting unfavorable terms that would undermine the protections granted to them by state law.
However, this does not prevent a franchisee from settling claims after entering into a Franchise Agreement. This allows franchisees the flexibility to resolve disputes with Mrcool through negotiated settlements, provided that such settlements are entered into voluntarily and do not require the franchisee to waive their rights upfront as a condition of the franchise agreement.