In Michigan, under what circumstances can Mrcool refuse to permit a transfer of ownership of a franchise?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
Amendments to the MRCOOL Franchise Disclosure 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.
- A.
A prohibition of your right to join an association of Franchisees.
- 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.
- C.
A provision that permits us to terminate a franchise before the expiration of this term except for good cause.
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, specifically the Michigan FDD Amendment, certain provisions that might allow Mrcool to restrict a franchisee's rights are void and unenforceable in Michigan. These include prohibitions on joining franchisee associations or requirements to waive rights and protections under the franchise act.
Additionally, Mrcool cannot terminate a franchise before its term expires without good cause. This means that while the standard franchise agreement might contain clauses that allow Mrcool to deny a transfer under certain conditions, Michigan law may override those clauses to protect the franchisee.
To fully understand the specific conditions under which Mrcool can refuse a transfer in Michigan, a prospective franchisee should consult with a legal professional familiar with Michigan franchise law. They should also directly ask Mrcool to clarify which transfer restrictions in the standard agreement are valid and enforceable in Michigan.