What Are The Franchise Laws in Michigan?
Michigan franchise law is governed by a comprehensive state statute known as the Michigan Franchise Investment Law (MFIL). That’s one reason you should invest in the services Michigan Franchise Attorneys.
Unlike states that rely solely on federal rules, Michigan is a “registration state,” which means that a franchisor must register its Franchise Disclosure Document (FDD) with the state’s Attorney General’s office before it can legally offer or sell any franchises in Michigan.
Note: This registration process involves a review by the state to ensure the disclosure documents are complete and not misleading, providing an additional layer of protection for prospective franchisees beyond federal requirements.
The MFIL also contains significant provisions that regulate the ongoing relationship between a franchisor and a franchisee.
A cornerstone of this protection is the regulation of franchise termination. In Michigan, a franchisor cannot terminate a franchise agreement without having “good cause,” which is specifically defined within the law.
Furthermore, the franchisor must provide the franchisee with written notice of the default and a reasonable opportunity, typically 30 days, to cure the issue before termination can proceed, preventing arbitrary or sudden contract cancellations.
And to ensure its rules are followed, the MFIL provides strong enforcement mechanisms.
In this case, the law grants franchisees a private right of action, allowing them to sue a franchisor for damages or rescission of the contract if the franchisor violates the statute. This gives franchisees a direct legal path to seek remedies for unlawful conduct.
In addition, the Michigan Attorney General has the authority to investigate and bring civil or criminal actions against franchisors who fail to comply with the law, creating a powerful deterrent against fraudulent or unfair franchise practices in the state.
Here is a list of franchise lawyers you can hire in Michigan
David L. Steinberg / David Steinberg & Salam Elia
300 Park Street, Suite 230
Birmingham, Michigan
Mark J. Burzych / Fahey Schultz Burzych Rhodes PLC
4110 Okemos Road
Okemos, Michigan
Aaron D. Rassi / Schnelker, Rassi & McConnell, PLC
201 Fulton St W Suite 500
Grand Rapids, Michigan
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Joel Libava, President.
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