FRANCHISE INVESTMENT LAW
Act 269 of 1974
445.1532 Joint and several liability.
Sec. 32.
A person who directly or indirectly controls a person liable under this act, a partner in a firm so liable, a principal executive officer or director of a corporation so liable, a person occupying a similar status or performing similar functions, an employee of a person so liable who materially aids in the act or transaction constituting the violation, is also liable jointly and severally with and to the same extent as the person, unless the other person who is so liable had no knowledge of or reasonable grounds to believe in the existence of the facts by reason of which the liability is alleged to exist.
History: 1974, Act 269, Eff. Oct. 15, 1974
Notes of Decisions
Toyz, Inc. v. Wireless Toyz, Inc., 799 F. Supp. 2d 737 (E.D. Mich. 2011).
“1509 of the MFIL; Count Eleven — Violation of § 445.1532 of the MFIL; Count Twelve — Violation of Cal.”
Berglund v. Cynosure, Inc., 502 F. Supp. 2d 949 (D. Minn. 2007).
“See Mich. Comp. Laws Ann. § 445.1532 . For the reasons stated above, the Court finds that the Amended Complaint does not state a claim that Cynosure is liable as a control person under the Michigan statute.”
Interstate Automatic Transmission Co. v. Harvey, 350 N.W.2d 907 (Mich. Ct. App. 1984).
“” MCL 445.1532; MSA 19.854(32). Section 31(1) provides: *502 "(1) A person who offers or sells a franchise in violation of sections 5(1), 6, or 16 is liable to the person purchasing the franchise for damages or rescission, with interest at 6% per year from the date of purchase…”
Brian Lofgren v. AirTrona Canada, 677 F. App'x 1002 (6th Cir. 2017).
· cites it 5× “6 Mich. Comp. Laws § 445.1532 . The district court found Bar-berio to be “an employee of a person liable who materially aids in the act or transaction constituting the violation” of not providing the franchise disclosure form required by Section 8.”
Functional HIIT Fitness, LLC v. F45 Training Inc., No. 4:22-cv-10168 (E.D. Mich. Sept. 28, 2023).
· cites it 4× “7 Plaintiff’s seventh objection argues that the R&R failed to apply MFIL sections 32 and 39 ( Mich. Comp. Laws §§ 445.1532 , 445.1539) as a mechanism to find personal jurisdiction over each of the individual defendants.”
Jamil v. Longe, No. 2:24-cv-13029 (E.D. Mich. Aug. 21, 2025).
· cites it 2× “Mich. Comp. Laws § 445.1532 . But only if the company itself is also liable under the MFIL.”
Luxury Concepts Inc. v. Bateel Int'l LLC, No. 2:22-cv-10793, 2023 WL 3606649 (E.D. Mich. May 23, 2023).
“at ¶38 (citing MCL 445.1532). “The fact that a corporation does business in Michigan, without more, is insufficient for a court to assert personal jurisdiction over the directors and officers of that corporation.”
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