In Michigan, what constitutes 'good cause' for Pearce Bespoke to terminate a franchise agreement?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the addendum required by the state of Michigan addresses franchise terminations. It specifies that Pearce Bespoke can only terminate a franchise agreement before its expiration if there is 'good cause.'
In Michigan, 'good cause' for termination includes the franchisee's failure to comply with any lawful provision of the franchise agreement. However, Pearce Bespoke must provide the franchisee with written notice of the failure and a reasonable opportunity to correct it.
The reasonable opportunity to cure the failure does not need to be more than thirty (30) days. This means that if a Pearce Bespoke franchisee in Michigan violates a term of the franchise agreement, they have a maximum of 30 days to fix the issue after receiving written notice, or Pearce Bespoke can terminate the agreement.