Michigan Compiled Laws
Act 269 of 1974 - Franchise Investment Law (445.1501 - 445.1546)
Section 445.1513 - Conditions Prohibiting Offering for Sale or Selling Franchise.

Sec. 13.
A franchise shall not be offered for sale or sold in this state if any of the following apply:
(a) The franchisor's method of business includes or would include activities which are illegal where performed.
(b) A person identified in the disclosure statement has been convicted of an offense described in section 8(2)(e)(i), is subject to an administrative order, or has had a civil judgment entered against him or her involving the illegal offering of franchises or securities and the department determines that the involvement of the person in the sale or management of the franchise creates an unreasonable risk to prospective franchisees.
(c) The franchise offering is the subject of a permanent or temporary injunction entered under any federal or state act applicable to the offering.
(d) The franchisor has failed to pay the proper fee.
History: 1974, Act 269, Eff. Oct. 15, 1974 ;-- Am. 1984, Act 92, Eff. June 20, 1984

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Structure Michigan Compiled Laws

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 445.1504 - 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 445.1504b - 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 445.1506 - 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Section 445.1507 - Repealed. 1984, Act 92, Eff.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 Effe...

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.

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...

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.