Can Pearce Bespoke refuse to renew a franchise on terms not generally available to other franchisees?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
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:
- (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 Pearce Bespoke's 2025 Franchise Disclosure Document, a provision in the franchise agreement that allows Pearce Bespoke to refuse renewal on terms not generally available to other franchisees of the same class or type under similar circumstances is prohibited in the state of Michigan.
This protection for franchisees is specific to Michigan and aims to ensure fairness in the renewal process. It prevents Pearce Bespoke from imposing unreasonable or discriminatory renewal terms on individual franchisees compared to others in similar situations. This provision seeks to level the playing field and prevent the franchisor from leveraging its position to the detriment of specific franchisees during renewal negotiations.
For prospective Pearce Bespoke franchisees in Michigan, this addendum offers a degree of security, ensuring that renewal terms are consistent with what is offered to other franchisees. However, franchisees should still carefully review the franchise agreement and understand all other conditions for renewal, as Pearce Bespoke may have other valid reasons for non-renewal, as long as those reasons and terms are applied uniformly.