In Michigan, under what circumstances is Mrcool required to compensate a franchisee for inventory, supplies, equipment, fixtures, and furnishings upon non-renewal?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
Michigan FDD Amendment
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)
Based on the 2025 Mrcool Franchise Disclosure Document, there is an amendment specific to Michigan that addresses certain unfair provisions sometimes found in franchise documents. This amendment states that if any of the listed provisions are present in the franchise documents, they are considered void and unenforceable against the franchisee.
Specifically, the Michigan FDD Amendment for Mrcool indicates that any requirement for the franchisee to assent to a release, assignment, novation, waiver, or estoppel that deprives them of rights and protections provided in the Michigan Franchise Investment Law is void. This means Mrcool cannot enforce any clause that forces a franchisee to give up their legal rights under Michigan law.
However, the excerpt does not explicitly detail the circumstances under which Mrcool is required to compensate a franchisee for inventory, supplies, equipment, fixtures, and furnishings upon non-renewal in Michigan. To fully understand the obligations of Mrcool regarding compensation for these items upon non-renewal, a prospective franchisee should review the complete franchise agreement and consult with a legal professional experienced in franchise law.