Mich. Comp. Laws » Michigan Compiled Laws / Chapter 445 / Act 269 of 1974
Michigan Compiled Laws

Mich. Comp. Laws § 445.1505 (2026)

Prohibited conduct in connection with offer, sale, or purchase of franchise.

✓ current as of July 2026
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FRANCHISE INVESTMENT LAW


Act 269 of 1974


445.1505 Prohibited conduct in connection with offer, sale, or purchase of franchise.

Sec. 5.

    A person shall not, in connection with the filing, offer, sale, or purchase of any franchise, directly or indirectly:

    (a) Employ any device, scheme, or artifice to defraud.

    (b) Make any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they are made, not misleading.

    (c) Engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person.

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

Notes of Decisions
Cited in 12 cases (2 in the last 5 years), 1993–2025 · leading case: Grand Kensington, LLC v. Burger King Corp., 81 F. Supp. 2d 834 (E.D. Mich. 2000).
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Grand Kensington, LLC v. Burger King Corp., 81 F. Supp. 2d 834 (E.D. Mich. 2000). · cites it 6× “Plaintiffs’ complaint alleges five separate counts: (1) violation of the Michigan Franchise Investment Law, Mich.Comp.Laws § 445.1505; (2) fraud and misrepresentation; (3) silent fraud; (4) innocent misrepresentation; and (5) promissory estoppel.”
Kerrigan v. Visalus, Inc., 112 F. Supp. 3d 580 (E.D. Mich. 2015). · cites it 2× “§ 445.1505(a). Section 5(b) prohibits a person from “making] any untrue statement of a material fact” in connection with the filing, offer, sale, or purchase of any.”
Hamade v. Sunoco, Inc., 721 N.W.2d 233 (Mich. Ct. App. 2006). “, MCL 445.1505, 445.1507a, 445.1508, and 445.”
Franchise Mgmt. Unlimited, Inc v. Am.’s Favorite Chicken, 561 N.W.2d 123 (Mich. Ct. App. 1997). · cites it 3× “854(27)(g) for defendant’s refusal to approve the transfer (count I) and asserting a claim for damages under § 5 of the Mm, MCL 445.1505; MSA 19.854(5), on the ground that defendant committed unfair and deceptive acts in connection with its attempted sale of the franchise (count…”
Two Men & a Truck/Int'l Inc. v. Two Men & a Truck/Kalamazoo, Inc., 949 F. Supp. 500 (W.D. Mich. 1996). · cites it 2× “Second, defendants claim that plaintiff violated Section 445.1505 of the MFIL by fraudulently misrepresenting the future prof *506 it potential of plaintiffs franchises.”
Hamade v. Sunoco, Inc.(r & M), 721 N.W.2d 233 (Mich. Ct. App. 2006). “, MCL 445.1505, 445.1507a, 445.1508, and 445.”
Bucciarelli v. Nationwide Mut. Ins., 662 F. Supp. 2d 809 (E.D. Mich. 2009). “See MCL 445.1505. Nation *817 wide moves for judgment on the pleadings on Count II on the grounds that the MFIL does not apply to Nationwide’s contract with Bucciarelli and therefore Bucciarelli cannot state a claim under the MFIL.”
Banek Inc. v. Yogurt Ventures U.S.A., Inc., 6 F.3d 357 (6th Cir. 1993). “Compare Mich.Comp.Laws Ann. §§ 445.1505, 445.1508, 445.”
Laurel Investments, LLC, et al. v. Holiday Hosp. Franchising, LLC (E.D. Mich. 2025). · cites it 4× “Laws § 445.1505 (Count VI). (ECF No. 4, PageID.”
Abbo v. Wireless Toyz Franchise, LLC, 871 N.W.2d 205 (Mich. 2015). · cites it 6× “1505 of the Michigan Franchise Investment Law, which provides: A person shall not, in connection with the filing, offer, sale, or purchase of any franchise, directly or indirectly: * * * (b) Make any untrue statement of a material fact or omit to state a material fact necessary…”
Lakeside Surfaces, Inc. v. Cambria Co., LLC (W.D. Mich. 2020). · cites it 3× “For instance, Lakeside claims that Cambria made false statements in connection with the offer or sale of a franchise, in violation of Mich. Comp. Laws § 445.1505 , and failed to make the disclosures required by Mich.”
Red Fit LLC v. Red Effect Int'l Franchise LLC (Mich. Ct. App. 2024). “And “[a] person who offers or sells a franchise in violation of [MCL 445.1505 or MCL 445.1508] is liable to the person purchasing the franchise for damages or rescission.”
— Mich. Comp. Laws § 445.1505(a) — 1 case
Kerrigan v. Visalus, Inc., 112 F. Supp. 3d 580 (E.D. Mich. 2015). “§ 445.1505(a). Section 5(b) prohibits a person from “making] any untrue statement of a material fact” in connection with the filing, offer, sale, or purchase of any.”
— Mich. Comp. Laws § 445.1505(b) — 1 case
Laurel Investments, LLC, et al. v. Holiday Hosp. Franchising, LLC (E.D. Mich. 2025). “Laws § 445.1505 (Count VI). (ECF No. 4, PageID.”
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