Sec. 4.
(1) This act applies to all written or oral arrangements between a franchisor and franchisee in connection with the offer or sale of a franchise, including, though not limited to, the franchise offering, the franchise agreement, sales of goods or services, leases and mortgages of real or personal property, promises to pay, security interests, pledges, insurance, advertising, construction or installation contracts, servicing contracts, and all other arrangements in which the franchisor or subfranchisor has an interest.
(2) An offer or sale of a franchise is made in this state when an offer to sell is made in this state, or an offer to buy is accepted in this state, or, if the franchisee is domiciled in this state, the franchised business is or will be operated in this state.
(3) An offer to sell is made in this state when the offer either originates from this state or is directed by the offeror to this state and received at the place to which it is directed. An offer to sell is accepted in this state when acceptance is communicated to the offeror in this state. An acceptance is communicated to the offeror in this state when the offeree directs it to the offeror in this state reasonably believing the offeror to be in this state and it is received at the place to which it is directed.
(4) An offer to sell is not made in this state merely because a publisher circulates or there is circulated on his behalf in this state a bona fide newspaper or other publication of general, regular, and paid circulation which has had more than 2/3 of its circulation outside this state during the past 12 months, or a radio or television program originating outside this state is received in this state.
History: 1974, Act 269, Eff. Oct. 15, 1974
Structure Michigan Compiled Laws
Chapter 445 - Trade and Commerce
Act 269 of 1974 - Franchise Investment Law (445.1501 - 445.1546)
Section 445.1501 - Short Title; Construction.
Section 445.1502 - Definitions.
Section 445.1503 - Additional Definitions; Burden of Proof.
Section 445.1504a - Applicability of Act.
Section 445.1504b - Franchisee as Sole Employer.
Section 445.1505 - Prohibited Conduct in Connection With Offer, Sale, or Purchase of Franchise.
Section 445.1505a - Franchise Opportunities Handbook.
Section 445.1507 - Repealed. 1984, Act 92, Eff. June 20, 1984.
Section 445.1509-445.1511 - Repealed. 1984, Act 92, Eff. June 20, 1984.
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 445.1522 - 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 445.1529, 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 445.1537 - Repealed. 1984, Act 92, Eff. June 20, 1984.
Section 445.1538 - Violation; Penalty; Punishing Crime Under Other Statute.
Section 445.1543-445.1545 - Repealed. 1984, Act 92, Eff. June 20, 1984.