Franchise relationships are built on binding agreements that directly impact how you operate, expand, and safeguard your investment. Whether you are purchasing a franchise, navigating a conflict with a franchisor, or addressing matters involving commercial litigation, franchise law defines the responsibilities, protections, and legal obligations of both parties involved. August Law, PLLC, represents businesses in franchise transactions and disputes.
How the Michigan Franchise Investment Law Protects You
Michigan’s Franchise Investment Law is one of the country’s most protective franchise laws, providing franchisees with specific safeguards against unfair practices. The statute addresses a wide range of conduct that franchisors are prohibited from engaging in, including:
- Prohibiting franchisees from joining or forming a franchisee association
- Conditioning a franchise agreement on the franchisee waiving rights granted under the Franchise Investment Law
- Declining to renew a franchise without offering fair compensation for repurchase or without extending terms comparable to those given to similarly situated franchisees
- Mandating that arbitration or litigation take place outside of the state
- Misrepresenting earnings projections or financial performance in disclosure documents
- Terminating a franchise without proper cause or adequate notice
- Imposing unreasonable restrictions on the transfer or sale of a franchise
Common Types of Franchise Law Legal Disputes
Disputes between franchisors and franchisees arise from a variety of circumstances, and many involve significant financial exposure for both parties. The following are among the most frequently litigated issues in franchise law:
- Fee disputes
- Franchise disclosure violations
- Breach of guarantees
- Breach of the franchise agreement
- Antitrust violations
- Wrongful termination or non-renewal
- Territorial encroachment by the franchisor
- Racial/religious/sex discrimination
- Franchisor fraud or unfair business practices
- Unfair or illegal franchisor practices
- Misrepresentation of franchise earnings or costs
- Inadequate or inaccurate financial disclosures
- Enforcement of arbitration agreements
- Failure to provide promised training or operational support
- Transfers of franchises in Michigan
- Unauthorized modifications to system standards or required suppliers
- Disputes over advertising fund contributions and usage
- Regulatory investigation/enforcement actions by state officials
A franchisee who can demonstrate certain violations of the Franchise Investment Law may recover actual damages, reasonable attorney fees, and costs incurred in bringing the action.
Why Choose Our Michigan Franchise Lawyers?
Our attorneys bring a thorough command of franchise law to every matter before a client ever walks through our doors. As an award-winning litigation law firm, August Law approaches each case with the preparation and strategic focus it demands:
- Franchisor and Franchisee Representation: Our lawyers handle disputes on both sides of the franchise relationship, giving us a perspective that strengthens our case strategy regardless of which party we represent.
- Regulatory Compliance Guidance: Our team advises clients on Federal Trade Commission (FTC) disclosure requirements and Michigan-specific registration obligations to reduce the risk of future disputes.
- Trial-Ready Litigation: Our attorneys prepare every case as though it will go before a judge or jury, which strengthens our position at the negotiation table and in mediation.
Contact Our Michigan Franchise Attorneys to Discuss Your Legal Options
With seasoned legal counsel at August Law, PLLC, you gain a team that understands the weight of what is at stake in franchise disputes. Call 248-833-6225 or contact us online to schedule your free and confidential consultation with our Michigan franchise attorneys.
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