Mich. Admin. Code R. 445.802 - Exempt communications; contents

Rule 802.

(1) A notice, circular, or other communication which is published or transmitted only after a registration or exemption pursuant to section 6(2)(a) or (b) of the act need not be filed with the administrator if the franchise is effective and the notice, circular, or communication contains only the statements required or permitted to be included therein by the following provisions of this rule.

(2) A communication shall include, subject to the requirements of these rules, the following items of information which need not follow the numerical sequence of this subrule:

(a) The name of the franchisor.

(b) An identification of the type of business to be conducted by the franchisee.

(c) The total initial and deferred franchise fee required to be made on a franchise purchase or, if the amount of the fee varies, the method of its determination or the probable price range.

(d) The name and address of the sender of the communication.

(e) The logotype or symbol of the franchisor, if desired by the franchisor.

(f) A statement, in letters of not less than 8-point type, that:

"PURSUANT TO THE MICHIGAN FRANCHISE INVESTMENT LAW, SALES MAY NOT BE MADE UNLESS A PROSPECTUS HAS BEEN DELIVERED 1 WEEK PRIOR TO ENTERING INTO A FRANCHISE AGREEMENT OR PAYING CONSIDERATION."

(g) The correct legal name and address of the individual or organization from whom an offering prospectus may be obtained.

(3) A franchisor making an offer in reliance upon the exemptions of section 6(2)(e) or (f) of the act need not file advertising with the administrator unless this exemption is revoked by order of the administrator.

Notes

Mich. Admin. Code R. 445.802

1979 AC