Michigan Franchise Laws
How to Find State Specific Franchise Laws for Michigan
Michigan considers a franchise any agreement under which one company is regulated by and licensed to use the trademarks of another company. Therefore, the specific franchise laws of Michigan will apply even to non-corporate business. The Michigan Attorney General's office has information online explaining risks and benefits of investing in a franchise in Michigan. With Internet research and contact with the Michigan Attorney General's office, you can find a bounty of franchise information.
1. Note that Michigan is one of the 15 U.S. states in which franchisers must provide franchisees with a UFOC (Uniform Franchise Offering Circular) by law. The UFOC must conform to specific requirements laid out by the FTC (Federal Trade Commission).
2. Know that UFOC documents must correctly address a number of aspects of the franchiser's business, including financial and trademark information. Read the UFOC requirements at the North American Securi ties Administrators Association, or NASAA, website.
3. Understand that while Michigan requires franchisers to present franchisees with the UFOC prior to the Franchise Agreement, franchisers do not need to register the UFOC with the state. By contrast, 13 out of the other 14 UFOC states do require registration.
4. Head to the Michigan Legislature Franchise Law page and read the introduction to the Franchise Invest ment Law of Michigan. You'll find that the statute applies to not only sale and purchase, but also to offers to sell franchises in Michigan.
5. Click on any link to read that specific section of the Michigan Franchise Investment Act, which was updated in 1984.
6. Go to the website for the Michigan Legislature and click on the "Bills" link. This will alert you to any pend ing laws that affect Michigan's Franchise Investment Act.
7. Call the Michigan State Law Library at (517) 373-0630 to ask questions about changes to the Michigan Franchise Investment Act.
8. Write a letter with your specific Michigan franchise law questions to the Michigan Attorney General's office at PO Box 30215, Lansing MI, 48909.
9. Log on to the Michigan Attorney General's Franchise Investment Report to read Michigan's information and suggestions for approaching a franchise deal.
Tips & Warnings
Michigan's franchise laws are not restricted to incorporated business. You should carefully research Michigan's state specific franchise laws even if you have operated a franchise in another state.
The Michigan Attorney General recommends that you engage an attorney when considering opening a franchise. While an attorney is not required, a specialized franchise lawyer can help you understand the risks of investing i n a franchise.