Michigan Laws 445.1513 – Conditions prohibiting offering for sale or selling franchise
Current as of: 2024 | Check for updates
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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.
For details, see Mich. Comp. Laws ch. 777 pt. 2
Attorney's Note
Under the Michigan Laws, punishments for crimes depend on the classification. In the case of this section:| Class | Prison | Fine |
|---|---|---|
| G | up to 7 years |
Terms Used In Michigan Laws 445.1513
- Injunction: An order of the court prohibiting (or compelling) the performance of a specific act to prevent irreparable damage or injury.
- person: may extend and be applied to bodies politic and corporate, as well as to individuals. See Michigan Laws 8.3l
- state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o
(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.