Under what conditions can Pearce Bespoke terminate a franchise agreement early in Michigan?
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:
- (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 the 2025 Pearce Bespoke Franchise Disclosure Document, an addendum for the state of Michigan addresses early termination. Michigan law mandates that Pearce Bespoke can only terminate a franchise agreement before its term expires if there is "good cause."
"Good cause" is defined as the franchisee's failure to comply with any lawful provision within the franchise agreement. However, Pearce Bespoke must provide the franchisee with written notice of the failure and a reasonable opportunity to correct it.
The cure period does not have to exceed 30 days. This Michigan addendum ensures that Pearce Bespoke franchisees in Michigan have certain protections against potentially unfair termination practices, aligning with state-specific franchise regulations.