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.

Difficulty: Moderately Easy

Instructions

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 Securities Administrators Association, or NASAA, website (see Resources below).

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 (see Resources below) and read the introduction to the Franchise Investment 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 (see Resources below) and click on the "Bills" link. This will alert you to any pending laws that affect Michigan's Franchise Investment Act.

7. Call the Michigan State Law Library at [phone] 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 (see Resources below).

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 in a franchise.

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on 3/7/2009 FACTS will help maintain better franchise relationships and keep compliance services consistent and fair throughout the franchise system, and reduce costs and liability by creating a record of communications, documents and notices sent.http://www.francompliance.com