What advance notice must Pearce Bespoke provide if it intends not to renew a franchise?

According to Pearce Bespoke's 2025 Franchise Disclosure Document, the standard agreement does not specify a minimum advance notice Pearce Bespoke must provide to the franchisee if it decides not to renew the franchise agreement. However, an addendum required by the state of Michigan addresses this issue.

Specifically, if the initial franchise term is less than five years, and the franchisee is prohibited from operating a similar business in the same area under a different brand after the franchise expires, then Pearce Bespoke must provide at least six months' advance notice if it intends not to renew the franchise. This requirement ensures that franchisees in Michigan have sufficient time to prepare for the end of their franchise agreement and explore other business opportunities.

This Michigan addendum also stipulates that if Pearce Bespoke chooses not to renew the franchise under these conditions, they must fairly compensate the franchisee for the fair market value of their inventory, supplies, equipment, fixtures, and furnishings at the time of expiration. This compensation excludes personalized materials with no value to Pearce Bespoke and items not reasonably required for the franchise business. This provision aims to protect franchisees' investments in their business if the franchise is not renewed, but only applies under the specific conditions outlined in the addendum.