Michigan Compiled Laws

Mich. Comp. Laws § 445.1502 (2026)

Definitions.

✓ current as of July 2026
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FRANCHISE INVESTMENT LAW


Act 269 of 1974


445.1502 Definitions.

Sec. 2.

    (1) "Advertisement" means a written or printed communication or a communication by means of recorded telephone message or spoken on radio, television, or similar communications media, published in connection with an offer or sale of a franchise.

    (2) "Department" means the department of attorney general.

    (3) "Franchise" means a contract or agreement, either express or implied, whether oral or written, between 2 or more persons to which all of the following apply:

    (a) A franchisee is granted the right to engage in the business of offering, selling, or distributing goods or services under a marketing plan or system prescribed in substantial part by a franchisor.

    (b) A franchisee is granted the right to engage in the business of offering, selling, or distributing goods or services substantially associated with the franchisor's trademark, service mark, trade name, logotype, advertising, or other commercial symbol designating the franchisor or its affiliate.

    (c) The franchisee is required to pay, directly or indirectly, a franchise fee.

    (4) "Franchisee" means a person to whom a franchise is granted.

    (5) "Franchisor" is a person who grants a franchise and includes a subfranchisor.

    (6) "Area franchise" means a contract or agreement between a franchisor and a subfranchisor whereby the subfranchisor is granted the right, for consideration given in whole or in part for such right, to sell or negotiate the sale of franchises in the name or on behalf of the franchisor; unless specifically stated otherwise, franchise includes area franchise.

    (7) "Subfranchisor" is a person to whom an area franchise is granted.

History: 1974, Act 269, Eff. Oct. 15, 1974 ;-- Am. 1984, Act 92, Eff. June 20, 1984

Notes of Decisions
Cited in 12 cases (1 in the last 5 years), 1993–2024 · leading case: Hamade v. Sunoco, Inc., 721 N.W.2d 233 (Mich. Ct. App. 2006).
Hamade v. Sunoco, Inc., 721 N.W.2d 233 (Mich. Ct. App. 2006). · cites it 5× “1502(3), a “franchise” is defined as *154 a contract or agreement, either express or implied, whether oral or written, between 2 or more persons to which all of the following apply: (a) A franchisee is granted the right to engage in the business of offering, selling, or…”
Hamade v. Sunoco, Inc.(r & M), 721 N.W.2d 233 (Mich. Ct. App. 2006). · cites it 5× “1502(3), a "franchise" is defined as a contract or agreement, either express or implied, whether oral or written, between 2 or more persons to which all of the following apply: (a) A franchisee is granted the right to engage in the business of offering, selling, or distributing…”
Bucciarelli v. Nationwide Mut. Ins., 662 F. Supp. 2d 809 (E.D. Mich. 2009). · cites it 3× “” MCL 445.1502. Defendant argues that the complaint and amended complaint fail to state a claim because it fails to meet two of these three elements required to constitute a franchise.”
John Labatt Ltd. v. Molson Breweries, 853 F. Supp. 965 (E.D. Mich. 1994). · cites it 2× “269 of the Public Acts of 1974, being section 445.1502 of the Michigan Compiled Laws, or the sale of an ongoing business if the owner of that business sells and intends to sell only that single business opportunity.”
Galper v. United States Shoe Corp., 815 F. Supp. 1037 (E.D. Mich. 1993). · cites it 3× “§ 445.1502(3) (1979) (emphasis added). Section 445.”
Bye v. Nationwide Mut. Ins., 733 F. Supp. 2d 805 (E.D. Mich. 2010). “) Under MCL 445.1502(3), a “franchise” is defined as “a contract or agreement, either express or implied, whether oral or written, between 2 or more persons to which all of the following apply: (a) A franchisee is granted the right to engage in the business of offering, selling,…”
Watkins & Son Pet Supplies v. Iams Co., 107 F. Supp. 2d 883 (S.D. Ohio 1999). “Mich. Comp. Laws § 445.1502 (3). 10 Initially, the Court notes that the agreement signed by Watkins and lams does not, on its face, purport to be a franchise agreement.”
Jerome-Duncan, Inc. v. Auto-By-Tel, LLC, 989 F. Supp. 838 (E.D. Mich. 1997). · cites it 2× “Mich.Comp.Laws Ann. § 445.1502(3). The agreement between the parties in this case does not meet either of the first two requirements.”
Jerome-Duncan, Inc. v. Auto-By-Tel, L.L.C., 966 F. Supp. 540 (E.D. Mich. 1997). “§ 445.1502(3). At the outset, this court notes that nowhere in the agreement is the word “franchise” used.”
Lakeside Surfaces, Inc. v. Cambria Co., LLC (W.D. Mich. 2020). · cites it 4× “Mich. Comp. Laws § 445.1502 (3). As to the first element, Lakeside alleges that Cambria granted it the right to sell Cambria’s quartz countertops according to a plan “prescribed in substantial part by Cambria.”
Brian Lofgren v. AirTrona Canada, 677 F. App'x 1002 (6th Cir. 2017). · cites it 2× “” Mich. Comp. Laws § 445.1502 (3). 2 . Section 8 of the Michigan Franchise Statute conditions the sale of a “franchise" upon the "prospective franchisee” receiving a “disclosure statement” with a large amount of information about the franchisor’s business and history including…”
Red Fit LLC v. Red Effect Int'l Franchise LLC (Mich. Ct. App. 2024). “” A “franchise” under the MCL 445.1502(3) of the MFIL is defined as follows: [A] contract or agreement, either express or implied, whether oral or written, between 2 or more persons to which all of the following apply: (a) A franchisee is granted the right to engage in the…”
— Mich. Comp. Laws § 445.1502(3) — 7 cases
Hamade v. Sunoco, Inc., 721 N.W.2d 233 (Mich. Ct. App. 2006). “1502(3), a “franchise” is defined as *154 a contract or agreement, either express or implied, whether oral or written, between 2 or more persons to which all of the following apply: (a) A franchisee is granted the right to engage in the business of offering, selling, or…”
Hamade v. Sunoco, Inc.(r & M), 721 N.W.2d 233 (Mich. Ct. App. 2006). “1502(3), a "franchise" is defined as a contract or agreement, either express or implied, whether oral or written, between 2 or more persons to which all of the following apply: (a) A franchisee is granted the right to engage in the business of offering, selling, or distributing…”
Galper v. United States Shoe Corp., 815 F. Supp. 1037 (E.D. Mich. 1993). “§ 445.1502(3) (1979) (emphasis added). Section 445.”
Bye v. Nationwide Mut. Ins., 733 F. Supp. 2d 805 (E.D. Mich. 2010). “) Under MCL 445.1502(3), a “franchise” is defined as “a contract or agreement, either express or implied, whether oral or written, between 2 or more persons to which all of the following apply: (a) A franchisee is granted the right to engage in the business of offering, selling,…”
Jerome-Duncan, Inc. v. Auto-By-Tel, LLC, 989 F. Supp. 838 (E.D. Mich. 1997). “Mich.Comp.Laws Ann. § 445.1502(3). The agreement between the parties in this case does not meet either of the first two requirements.”
— Mich. Comp. Laws § 445.1502(3)(a) — 1 case
Bucciarelli v. Nationwide Mut. Ins., 662 F. Supp. 2d 809 (E.D. Mich. 2009). “” MCL 445.1502. Defendant argues that the complaint and amended complaint fail to state a claim because it fails to meet two of these three elements required to constitute a franchise.”
— Mich. Comp. Laws § 445.1502(3)(c) — 3 cases
Hamade v. Sunoco, Inc.(r & M), 721 N.W.2d 233 (Mich. Ct. App. 2006). “1502(3), a "franchise" is defined as a contract or agreement, either express or implied, whether oral or written, between 2 or more persons to which all of the following apply: (a) A franchisee is granted the right to engage in the business of offering, selling, or distributing…”
Hamade v. Sunoco, Inc., 721 N.W.2d 233 (Mich. Ct. App. 2006). “1502(3), a “franchise” is defined as *154 a contract or agreement, either express or implied, whether oral or written, between 2 or more persons to which all of the following apply: (a) A franchisee is granted the right to engage in the business of offering, selling, or…”
Bucciarelli v. Nationwide Mut. Ins., 662 F. Supp. 2d 809 (E.D. Mich. 2009). “” MCL 445.1502. Defendant argues that the complaint and amended complaint fail to state a claim because it fails to meet two of these three elements required to constitute a franchise.”
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