As of the date of this Pearce Bespoke Franchise Disclosure Document, what is the filing status for Michigan?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
---------------------------------------| | Pearce Bespoke Franchising, LLC | | By: | | | | Nathan Pearce | | , Chief Executive Officer | | (Print Name, Title) | | | | FRANCHISEE: | | | | By: | | , | | (Print Name, Title) | | | | PRINCIPAL: | | | | | | (Print Name) | | | | PRINCIPAL: | | | | | | (Print Name) |
ADDENDUM TO THE PEARCE BESPOKE FRANCHISING LLC DISCLOSURE DOCUMENT AND FRANCHISE AGREEMENT REQUIRED BY THE STATE OF MICHIGAN
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 on the right of a franchisee to join an association of franchises.
- (b) A requirement that a franchisee assent to a release, assignment, novation, waiver or estoppel which deprives a franchisee of rights and protections provided in this act. This shall not preclude a franchisee, after entering into a franchise agreement, from settling any and all claims.
- (c) A provision that permits a franchisor to terminate a franchise prior to the expiration of its term except for good cause. Good cause shall include the failure of the franchisee to comply with any lawful provision of the franchise agreement and to cure such failure after being given written notice thereof and a reasonable opportunity, which in no event need be more than thirty (30) days, to cure such failure.
- (d) A provision that permits a franchisor to refuse to renew a franchise without fairly compensating the franchisee by repurchase or other means for the fair market value at the time of expiration of the franchisee's inventory, supplies, equipment, fixtures and furnishings.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the franchise is required to have an addendum for Michigan. The state of Michigan prohibits certain unfair provisions that are sometimes included in franchise documents. If any of these provisions are present in Pearce Bespoke's franchise documents, they are considered void and cannot be enforced against the franchisee.
The specific provisions that Michigan prohibits include: restrictions on a franchisee's right to join a franchise association; requirements for a franchisee to waive rights and protections under the act; allowing Pearce Bespoke to terminate a franchise before its term expires without good cause (where good cause is defined); allowing Pearce Bespoke to refuse renewal without fairly compensating the franchisee for inventory, supplies, equipment, fixtures, and furnishings (with some exceptions); and allowing Pearce Bespoke to refuse renewal on terms not generally available to other franchisees in similar circumstances.
The Pearce Bespoke FDD must be registered or filed with the state, or be exempt from registration in Michigan. This means that Pearce Bespoke has taken steps to comply with Michigan's franchise laws, which offers some protection to franchisees operating in that state.