Michigan Franchise Registration

Michigan is a constituent state of the United States of America, which attracts businesses because of the abundant and diverse workforce, low cost of living, business-friendly environment, and global supply chain assets. In addition, the state has available business resources, a bonus for businesses looking for a suitable place to establish their operations. If you are looking for a skilled, talented workforce for your franchise, then Michigan has got you covered. Regardless of the industry, Michigan has a highly skilled and growing workforce that meets the talent needs of different companies relocating there.

Michigan is among the franchise registration states, but it defers from other registration states because it doesn’t require you to register your Franchise Disclosure Documents with the state or submit a copy for review. This makes the state a “notice only” state, which means you must file an annual Notice of Intent with the Michigan Attorney General.

For the Notice of Intent to be in effect, you are required to type it on the letterhead of your franchise company and include the name of your franchise company. Franchisors are also expected to have the principal address of your franchise company and describe the franchised business in brief. The Notice of Intent is submitted with a $250 check, which is payable to the state. Although you are not required to register your Franchise Disclosure Document, you must file and renew the Notice of Intent every year. It is only in effect once you receive confirmation of your filing through the Attorney General’s Insurance of a notice supporting your filing. The notice from the Attorney General will have the word filed and will be marked with an effective date.

Michigan has enacted specific franchise laws, which technically make it a franchise registration state that requires filing with the state before the offer or sale of a franchise. However, it differs from all other franchise registration states. It does not require the filing of the FDD but rather a Notice of Intent which limits the amount of information needed by the state from a franchisor. Most franchise registration states usually remain with a copy of your Franchise Disclosure Document, which is not the case for Michigan. It is advisable to be cautious when self-certifying your Michigan FDD because of the extensive disclosure requirements and franchise laws.

Like other franchise registration states, Michigan requires certain state disclosures in the State Cover Page. However, the difference comes in where the state mandates placement of its disclosures specific only to Michigan after the Franchise Disclosure Document State Cover Page, rather than on the state-specific additional attachments at the back of the FDD. The disclosure and placement requirements are stipulated in Michigan’s Franchise Investment Law. Therefore, franchisors relocating to Michigan need to familiarize themselves with the state’s Franchise Investment Law for the successful registration of their franchise business.

For more information on how to register your franchise in Michigan, visit the Franchise Marketing Systems site:  www.FMSFranchise.com/about-franchising/guidelines/stateregulations