factual

In Michigan, can Pearce Bespoke refuse to renew a franchise on terms generally available to other franchisees?

Pearce_Bespoke Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (e) A provision that permits the franchisor to refuse to renew a franchise on terms generally available to other franchisees of the same class or type under similar circumstances.

Source: Item 22 — CONTRACTS (FDD page 39)

What This Means (2025 FDD)

According to the 2025 Pearce Bespoke Franchise Disclosure Document, Michigan law includes specific protections for franchisees. One of these protections prevents Pearce Bespoke from refusing to renew a franchise if the terms offered are generally available to other franchisees of the same class or type under similar circumstances. This provision ensures that Pearce Bespoke franchisees in Michigan are treated equitably in renewal opportunities compared to their peers.

This protection means that Pearce Bespoke cannot discriminate against a franchisee in Michigan by offering less favorable renewal terms if other franchisees in similar situations receive better terms. The law aims to prevent Pearce Bespoke from unfairly disadvantaging a franchisee during the renewal process. However, the provision does not guarantee renewal; it only mandates that if renewal is offered, the terms must be consistent with what is generally available to other franchisees.

For a prospective Pearce Bespoke franchisee in Michigan, this addendum provides an important safeguard. It ensures that the franchisee will not be subject to arbitrary or discriminatory renewal terms. However, franchisees should still carefully review the franchise agreement and understand all conditions for renewal, as meeting these conditions is still necessary for the renewal to be granted. Franchisees should also document any instances where they believe they are being treated differently from other franchisees in similar situations to protect their rights under Michigan law.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.