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Michigan Compiled Laws Complete Through PA 321 of 2023
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Act 269 of 1974
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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

The People of the State of Michigan enact:

Section 445.1501SectionShort title; construction.
Section 445.1502SectionDefinitions.
Section 445.1503SectionAdditional definitions; burden of proof.
Section 445.1504SectionArrangements 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 445.1504aSectionApplicability of act.
Section 445.1504bSectionFranchisee as sole employer.
Section 445.1505SectionProhibited conduct in connection with offer, sale, or purchase of franchise.
Section 445.1505aSectionFranchise opportunities handbook.
Section 445.1506SectionExemption of offer and sale of franchise from MCL 445.1507a and 445.1508; circumstances; compliance with MCL 445.1508.
Section 445.1507SectionRepealed. 1984, Act 92, Eff. June 20, 1984.
Section 445.1507aSectionNotice 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 445.1508SectionProspective franchisee to be provided copy of disclosure statement, notice, and proposed agreements; form and contents of disclosure statement; location and contents of notice.
Section 445.1509-445.1511SectionRepealed. 1984, Act 92, Eff. June 20, 1984.
Section 445.1512SectionEscrow of initial investment and other funds; time; surety bond; financial institution as escrow agent; release of escrowed funds; affidavit.
Section 445.1513SectionConditions prohibiting offering for sale or selling franchise.
Section 445.1514-445.1518SectionRepealed. 1984, Act 92, Eff. June 20, 1984.
Section 445.1519SectionFiling change in information contained in notice.
Section 445.1520SectionAccounts of franchise sales; reports; examination of records.
Section 445.1521SectionCertain facts not to constitute finding or approval; representation inconsistent with section prohibited.
Section 445.1522SectionService of process.
Section 445.1523SectionUntrue statement, omission, or failure to give notice of change.
Section 445.1524SectionFiling of advertisement or sales literature; exemption from liability.
Section 445.1525SectionPublication of false or misleading advertisement prohibited.
Section 445.1526SectionRepealed. 1984, Act 92, Eff. June 20, 1984.
Section 445.1527SectionVoid and unenforceable provisions.
Section 445.1528SectionPyramid.
Section 445.1529, 445.1530SectionRepealed. 1984, Act 92, Eff. June 20, 1984.
Section 445.1531SectionLiability for damages or rescission; basis of damages.
Section 445.1532SectionJoint and several liability.
Section 445.1533SectionStatute of limitations.
Section 445.1534SectionCivil liability; liability under other statute or common law.
Section 445.1535SectionAction 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 445.1536SectionInvestigations; statements under oath; administration of oaths and affirmations; subpoena; evidence; order requiring appearance; self-incrimination; perjury; contempt.
Section 445.1537SectionRepealed. 1984, Act 92, Eff. June 20, 1984.
Section 445.1538SectionViolation; penalty; punishing crime under other statute.
Section 445.1539SectionProhibited conduct equivalent to appointment of corporations and securities bureau as attorney for service of process; procedure for service of process.
Section 445.1540SectionCollection and disposition of fees and fines; detailed statement; fee for filing notice under MCL 445.1507a.
Section 445.1541SectionRules.
Section 445.1542SectionDocuments subject to MCL 15.231 to 15.246; publication of information; disclosure of information withheld from public inspection; evidence sought under subpoena.
Section 445.1543-445.1545SectionRepealed. 1984, Act 92, Eff. June 20, 1984.
Section 445.1546SectionPrior acts, offenses, rights, liabilities, penalties, forfeiture, or punishments not impaired or affected; transfer of records, personnel, and funds.
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