MCL - Act 269 of 1974

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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




The People of the State of Michigan enact:
Document Type Description
Section 445.1501 Section Short title; construction.
Section 445.1502 Section Definitions.
Section 445.1503 Section Additional definitions; burden of proof.
Section 445.1504 Section 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 Section Applicability of act.
Section 445.1504b Section Franchisee as sole employer.
Section 445.1505 Section Prohibited conduct in connection with offer, sale, or purchase of franchise.
Section 445.1505a Section Franchise opportunities handbook.
Section 445.1506 Section Exemption of offer and sale of franchise from MCL 445.1507a and 445.1508; circumstances; compliance with MCL 445.1508.
Section 445.1507 Section Repealed. 1984, Act 92, Eff. June 20, 1984.
Section 445.1507a Section 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 Section 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Section 445.1509-445.1511 Section Repealed. 1984, Act 92, Eff. June 20, 1984.
Section 445.1512 Section Escrow of initial investment and other funds; time; surety bond; financial institution as escrow agent; release of escrowed funds; affidavit.
Section 445.1513 Section Conditions prohibiting offering for sale or selling franchise.
Section 445.1514-445.1518 Section Repealed. 1984, Act 92, Eff. June 20, 1984.
Section 445.1519 Section Filing change in information contained in notice.
Section 445.1520 Section Accounts of franchise sales; reports; examination of records.
Section 445.1521 Section Certain facts not to constitute finding or approval; representation inconsistent with section prohibited.
Section 445.1522 Section Service of process.
Section 445.1523 Section Untrue statement, omission, or failure to give notice of change.
Section 445.1524 Section Filing of advertisement or sales literature; exemption from liability.
Section 445.1525 Section Publication of false or misleading advertisement prohibited.
Section 445.1526 Section Repealed. 1984, Act 92, Eff. June 20, 1984.
Section 445.1527 Section Void and unenforceable provisions.
Section 445.1528 Section Pyramid.
Section 445.1529, 445.1530 Section Repealed. 1984, Act 92, Eff. June 20, 1984.
Section 445.1531 Section Liability for damages or rescission; basis of damages.
Section 445.1532 Section Joint and several liability.
Section 445.1533 Section Statute of limitations.
Section 445.1534 Section Civil liability; liability under other statute or common law.
Section 445.1535 Section 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 Section Investigations; statements under oath; administration of oaths and affirmations; subpoena; evidence; order requiring appearance; self-incrimination; perjury; contempt.
Section 445.1537 Section Repealed. 1984, Act 92, Eff. June 20, 1984.
Section 445.1538 Section Violation; penalty; punishing crime under other statute.
Section 445.1539 Section Prohibited conduct equivalent to appointment of corporations and securities bureau as attorney for service of process; procedure for service of process.
Section 445.1540 Section Collection and disposition of fees and fines; detailed statement; fee for filing notice under MCL 445.1507a.
Section 445.1541 Section Rules.
Section 445.1542 Section 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 Section Repealed. 1984, Act 92, Eff. June 20, 1984.
Section 445.1546 Section Prior acts, offenses, rights, liabilities, penalties, forfeiture, or punishments not impaired or affected; transfer of records, personnel, and funds.