In Michigan, is Pearce Bespoke required to offer the same renewal terms to all franchisees of the same class?

According to the 2025 Pearce Bespoke Franchise Disclosure Document, Michigan law includes a provision that affects franchise renewals. Specifically, Pearce Bespoke cannot refuse to renew a franchise in Michigan if the terms for renewal are generally available to other franchisees of the same class or type operating under similar circumstances. This provision aims to ensure fairness and consistency in renewal opportunities for franchisees within the same category.

For a prospective Pearce Bespoke franchisee in Michigan, this means the franchisor must offer renewal terms that are generally consistent across the board for similar franchisees. Pearce Bespoke cannot arbitrarily deny renewal or impose significantly different terms on one franchisee compared to others in the same class, assuming similar circumstances. This offers a degree of protection against discriminatory renewal practices.

However, it is important to note that the provision is not a guarantee of renewal. A franchisee must still meet the standard conditions for renewal as outlined in the franchise agreement, such as compliance with operational standards, financial obligations, and other requirements. The Michigan addendum primarily addresses the fairness of the terms offered, not the decision to renew itself, provided the non-renewal is for good cause. Therefore, franchisees should still focus on maintaining a strong, compliant business to maximize their chances of renewal under any circumstances.