What advance notice must Pearce Bespoke give in Michigan if they intend not to renew a franchise?

According to the 2025 Pearce Bespoke Franchise Disclosure Document, Michigan franchisees must receive at least six months' advance notice if Pearce Bespoke intends not to renew the franchise, but only under specific conditions. This requirement applies if the franchise term is less than five years and the franchisee is either prohibited from operating a similar business in the same area after the franchise expires, or does not receive at least six months' notice of non-renewal.

This provision ensures that franchisees in Michigan have sufficient time to prepare for the end of their franchise agreement, whether by seeking a new business opportunity or negotiating a renewal. The compensation aspect further protects the franchisee's investment in inventory, supplies, equipment, fixtures, and furnishings, ensuring they are fairly compensated for these assets if the franchise is not renewed. However, personalized materials with no value to Pearce Bespoke and items not reasonably required for the business are excluded from compensation.

The stipulation regarding the franchise term being less than five years is particularly important. If the initial term is longer, this specific protection may not apply, highlighting the need for potential franchisees to carefully review the initial term and renewal conditions in the franchise agreement. The six-month notice requirement provides a reasonable timeframe for franchisees to make necessary arrangements, aligning with common practices aimed at protecting franchisees' interests upon termination or non-renewal.