In Michigan, can a Southern Steer franchisee be prohibited from joining an association of franchisees?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
MICHIGAN
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.
Each of the following provisions is void and unenforceable if contained in any document relating to a franchise:
- (a) A prohibition on your right to join an association of franchisees.
Source: Item 5 — and 7 of the FDD, Section 3.1 of the Franchise Agreement and Section 4.1 of the Multi-Unit Development Agreement are hereby amended to state that payment of the initial franchise fee and development fee will be deferred until We have satisfied Our pre-opening obligations, and You have commenced business operations. (FDD pages 168–290)
What This Means (2025 FDD)
According to the 2025 Southern Steer FDD, if a franchise agreement contains a provision that prohibits a franchisee in Michigan from joining an association of franchisees, that provision is void and unenforceable.
This means that Southern Steer cannot legally prevent its franchisees in Michigan from forming or joining an association with other Southern Steer franchisees. Such associations can provide a platform for franchisees to collectively address concerns, negotiate with the franchisor, and share best practices.
This protection is specific to Michigan, as the FDD explicitly states that "THE STATE OF MICHIGAN PROHIBITS CERTAIN UNFAIR PROVISIONS THAT ARE SOMETIMES IN FRANCHISE DOCUMENTS." Franchisees in other states may not have the same legal safeguard, so it's important to check the specific laws and regulations of the state where the franchise will operate.