2010 Michigan Compiled Laws
Chapter 445 - TRADE AND COMMERCE
Act 269 of 1974 - FRANCHISE INVESTMENT LAW (445.1501 - 445.1546)

FRANCHISE INVESTMENT LAW
Act 269 of 1974
AN ACT to regulate the offer, sale, and purchase of franchises; to prohibit fraudulent practices in relation thereto; to prohibit pyramid and chain promotions; to impose regulatory duties upon certain state departments and agencies; and to provide penalties.

History: 1974, Act 269, Eff. Oct. 15, 1974 ;-- Am. 1984, Act 92, Eff. June 20, 1984

• Section 445.1501 - Short title; construction.
• Section 445.1502 - Definitions.
• Section 445.1503 - Additional definitions; burden of proof.
• Section 445.1504 - Arrangements between franchisor and franchisee to which act applicable; making offer or sale of franchise in state; accepting offer to sell in state; communication of acceptance.
• Section 445.1504a - Applicability of act.
• Section 445.1505 - Prohibited conduct in connection with offer, sale, or purchase of franchise.
• Section 445.1505a - Franchise opportunities handbook.
• Section 445.1506 - Exemption of offer and sale of franchise from MCL 445.1507a and 445.1508; circumstances; compliance with MCL 445.1508.
• Section 445.1507 - Repealed. 1984, Act 92, Eff. June 20, 1984.
• Section 445.1507a - Notice required prior to offering for sale or selling franchise; fee; form and contents of notice; indorsement, return, and duration of notice; effect of compliance; penalty for failure to file notice; duty of franchisor with effective registration or exemption from registration; validity and enforceability of franchise documents; written notice of filing date and penalties; failure to notify franchisor.
• Section 445.1508 - Prospective franchisee to be provided copy of disclosure statement, notice, and proposed agreements; form and contents of disclosure statement; location and contents of notice.
• Section 445.1509-445.1511 - Repealed. 1984, Act 92, Eff. June 20, 1984.
• Section 445.1512 - Escrow of initial investment and other funds; time; surety bond; financial institution as escrow agent; release of escrowed funds; affidavit.
• Section 445.1513 - Conditions prohibiting offering for sale or selling franchise.
• Section 445.1514-445.1518 - Repealed. 1984, Act 92, Eff. June 20, 1984.
• Section 445.1519 - Filing change in information contained in notice.
• Section 445.1520 - Accounts of franchise sales; reports; examination of records.
• Section 445.1521 - Certain facts not to constitute finding or approval; representation inconsistent with section prohibited.
• Section 445.1522 - Service of process.
• Section 445.1523 - Untrue statement, omission, or failure to give notice of change.
• Section 445.1524 - Filing of advertisement or sales literature; exemption from liability.
• Section 445.1525 - Publication of false or misleading advertisement prohibited.
• Section 445.1526 - Repealed. 1984, Act 92, Eff. June 20, 1984.
• Section 445.1527 - Void and unenforceable provisions.
• Section 445.1528 - Pyramid or chain promotion or distribution.
• Section 445.1529, 445.1530 - Repealed. 1984, Act 92, Eff. June 20, 1984.
• Section 445.1531 - Liability for damages or rescission; basis of damages.
• Section 445.1532 - Joint and several liability.
• Section 445.1533 - Statute of limitations.
• Section 445.1534 - Civil liability; liability under other statute or common law.
• Section 445.1535 - Action by department for injunction, restitution, or compliance; restraining order; writ of mandamus; appointment of receiver or conservator; bond not required; costs; notice of action; opportunity to cease and desist or to confer with department; presumption of immediate and irreparable harm.
• Section 445.1536 - Investigations; statements under oath; administration of oaths and affirmations; subpoena; evidence; order requiring appearance; self-incrimination; perjury; contempt.
• Section 445.1537 - Repealed. 1984, Act 92, Eff. June 20, 1984.
• Section 445.1538 - Violation; penalty; punishing crime under other statute.
• Section 445.1539 - Prohibited conduct equivalent to appointment of corporations and securities bureau as attorney for service of process; procedure for service of process.
• Section 445.1540 - Collection and disposition of fees and fines; detailed statement; fee for filing notice under MCL 445.1507a.
• Section 445.1541 - Rules.
• Section 445.1542 - Documents subject to MCL 15.231 to 15.246; publication of information; disclosure of information withheld from public inspection; evidence sought under subpoena.
• Section 445.1543-445.1545 - Repealed. 1984, Act 92, Eff. June 20, 1984.
• Section 445.1546 - Prior acts, offenses, rights, liabilities, penalties, forfeiture, or punishments not impaired or affected; transfer of records, personnel, and funds.