Can Pearce Bespoke require a franchisee to assent to a waiver that deprives them of rights and protections?

According to Pearce Bespoke's 2025 Franchise Disclosure Document, specifically the addendum for the state of Michigan, there are explicit prohibitions against certain unfair provisions within the franchise documents. If a Pearce Bespoke franchise agreement contains a requirement that a franchisee assent to a release, assignment, novation, waiver, or estoppel that deprives them of rights and protections provided by Michigan's franchise regulations, that provision is void and unenforceable in Michigan. This protection ensures that franchisees in Michigan cannot be forced to relinquish their legal rights through such waivers.

This provision does not prevent a Pearce Bespoke franchisee from settling claims after entering into the franchise agreement. It simply means that Pearce Bespoke cannot include clauses in the initial agreement that compel franchisees to waive their rights from the outset. This distinction allows franchisees the flexibility to resolve disputes later on, but safeguards them from unknowingly or unwillingly giving up essential protections when signing the franchise agreement.

For a prospective Pearce Bespoke franchisee in Michigan, this addendum offers a degree of security. It prevents Pearce Bespoke from using overreaching contract terms to limit the franchisee's legal recourse or protections under state law. However, this protection is specific to Michigan; franchisees in other states would need to review their state-specific addenda or consult with legal counsel to understand similar protections in their jurisdiction.