reglab/statecodes huggingface dataset:
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Charitable Trusts › Section R. 14.14 - Suspension of annual reports

Current through Vol. 24-12, July 15, 2024
Rule 4. A trustee of a charitable trust may be granted a
				  suspension from the requirement of filing annual periodic reports on written
				  application supported by good and sufficient reasons. If a suspension is
				  granted, reports may be required on the happening of specified events or
				  contingencies or at stipulated future report dates. Ordinarily a suspension
				  will not be granted when reports on the operation of the charitable trust are
				  required to be made to a court or to other governmental
				  agencies.
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Charitable Trusts › Section R. 14.15 - Investigations

Current through Vol. 24-12, July 15, 2024
Rule 5. Either the attorney general or an assistant attorney
				  general designated by the attorney general may hear information under oath and
				  receive books, memoranda, papers, documents of title and evidence of assets,
				  liabilities, receipts or disbursements produced pursuant to an order of the
				  attorney general issued by the attorney general as provided by the
				  act.
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Charitable Trusts › Section R. 14.16 - Inspection of records

Current through Vol. 24-12, July 15, 2024
Rule 6. The charitable trust register, copies of instruments
				  and the reports filed with the attorney general shall be available for
				  inspection during regular business hours at the charitable trust division of
				  the office of the attorney general in Lansing, Michigan, subject to the
				  following requirements:
(a) An
				individual desiring to inspect the register, copies of instruments and the
				reports filed with the attorney general shall submit a request in writing
				setting forth his name, address and indicating his interest in the charitable
				trust records desired to be reviewed. If such request is approved by the
				attorney general, the authorized review of the register, copies of instruments
				and reports filed with the attorney general shall be made in the presence of
				the attorney general or his representative.
(b) If the charitable trust is to be used for
				both private and charitable purposes, only those portions of the documents
				pertaining to charitable purposes, and only if such charitable purposes have
				matured and come into being, shall be available for public
				inspection.
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Charitable Trusts › Section R. 14.17 - Repeal

Current through Vol. 24-12, July 15, 2024
Rule 7. Sections
				  1 to 5 of the
				  rules relating to charitable trusts, being R 14.1 to R 14.5 of the Michigan
				  Administrative Code, and appearing on pages 2757 to 2759 of the 1963 Annual
				  Supplement to the Code, are repealed.
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Pricing and Advertising of Consumer Items › Section R. 14.201 - Definitions

Current through Vol. 24-12, July 15, 2024
Rule 1. As used in these rules:
(a) "Act" means Act No. 449 of the Public
				Acts of 1976, being S445.351 et seq. of the Michigan Compiled Laws.
(b) "Clearance sale" means an offer by a
				person to sell all offered in-stock consumer items at a price reduced from that
				person's regular price if the person intends to sell out all such items during
				the advertised period of sale, but will nevertheless reorder the same or
				substantially similar items to be again sold by that person not less than 90
				days after the reorder.
(c) "Close
				out sale" means an offer by a person to sell offered in-stock consumer items at
				a price reduced from the person's regular price if consumer items will not be
				offered by that person again due to various factors, such as:
(i) The item is no longer
				manufactured.
(ii) The source of
				supply is out of business.
(iii)
				The person unilaterally refuses to carry the item.
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Pricing and Advertising of Consumer Items › Section R. 14.202 - Sale or reduced price advertisements; disclosures

Current through Vol. 24-12, July 15, 2024
Rule 2. An offer of a consumer item, except baked goods,
				  fresh fruit, and fresh vegetables as provided in section 5(4) of the act, for
				  retail sale at a sale price, special price, or at a price reduced by an amount
				  or proportion, by means of an advertisement disseminated in the trade area
				  served by any of the advertisers' retail outlets covered by the advertisement,
				  shall disclose clearly and conspicuously, in conjunction therewith, either of
				  the following:
(a) The dates the
				consumer item is available for purchase.
(b) The numerical quantity available for each
				consumer item, and where there is a limitation on how many of the advertised
				consumer items may be purchased by any 1 person, a statement in numerical
				amount of how many a consumer may buy of each advertised consumer
				item.
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Pricing and Advertising of Consumer Items › Section R. 14.203 - Disclosing exceptions, limitations, or restrictions rainchecks and substitutions

Current through Vol. 24-12, July 15, 2024
Rule 3.
(1) If an
				advertisement does not state the quantity of a consumer item available, and the
				consumer item cannot be sold throughout the advertised period of sale, the
				advertisement shall disclose all the seller's exceptions, limitations, or
				restrictions with respect to stores, consumer items, or prices otherwise
				included in the advertisement, and the advertiser shall make available a
				raincheck which obligates the advertiser to deliver and sell to the consumer in
				possession of the raincheck the consumer item specified in the raincheck, at
				the advertised price stated in the raincheck, and at the future date stated in
				the raincheck, not in excess of 90 days, or at an earlier time upon
				notification to the consumer by the advertiser. After notification to the
				consumer is given, the advertiser may dispose of the item upon failure of the
				consumer to pick up the item in the time specified in section 5(2) of the
				act.
(2) An advertiser, instead of
				providing the consumer with a raincheck, may substitute for the unavailable
				advertised consumer item a similar consumer item of equal or greater monetary
				value. This rule does not modify a person's obligations under section 5(3) of
				the act.
(3) If an advertiser
				elects to substitute a consumer item of equal or greater monetary value because
				the advertiser is unable to redeem a raincheck due to the unavailability of the
				advertised consumer item, the advertiser may substitute either a similar item
				bearing a substantially equivalent regular price at the advertised lower price,
				or a similar item bearing a higher regular price at a price equal to the
				regular price of the higher-priced item, less the percentage reduction offered
				for the unavailable consumer item.
Example: An advertisement indicates a
				  consumer item regularly sells for $50.00, but is on this week for does not
				  disclose the quantity available. The advertiser runs out of the advertised item
				  during the period of sale and knows that the item cannot be obtained again to
				  redeem a raincheck. The advertiser may then offer to a consumer either of the
				  following substitutesimilar items:
(a)
				Another similar $50.00 item at $30.00.
(b) Another similar item regularly selling
				for $75.00 at a comparable savings or reduction in price; that is, 40% off or
				$45.00.
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Pricing and Advertising of Consumer Items › Section R. 14.204 - Successive advertisements

Current through Vol. 24-12, July 15, 2024
Rule 4. Where an advertiser disseminates successive
				  advertisements, either to the same or different consumer groups, and each
				  advertisement contains the disclosures required by section 5 of the act and
				  these rules, the advertiser is not obligated to recount or redetermine the
				  quantity of consumer items then remaining available for each successive
				  advertisement if the advertiser clearly and conspicuously discloses that the
				  consumer items advertised and available in the quantities stated are subject to
				  prior sale dueto previous advertising during prior periods of time, and states
				  the date the advertising first appeared.
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Pricing and Advertising of Consumer Items › Section R. 14.205 - Determination of violation

Current through Vol. 24-12, July 15, 2024
Rule 5. In determining whether a violation of the act has
				  occurred, the following shall be considered:
(a) All circumstances surrounding nondelivery
				of advertised consumer items which were actually ordered in quantities
				sufficient to meet, or are reasonably related to the intended response to, the
				advertisement, but were not delivered due to circumstances beyond the
				advertiser's control.
(b) All
				circumstances surrounding failure to make advertised consumer items
				conspicuously and readily available for sale at or below the advertised prices
				if the consumer items were not made available at those prices due to
				circumstances beyond the control of the advertiser. In such cases, the making
				available of a raincheck shall be considered; however, the mere existence of a
				"policy" to provide a raincheck, in and of itself, does not constitute
				compliance.
(c) Whether the
				advertiser instructed each of the advertiser's employees, agents, or servants
				of the existence of a raincheck; whether the advertiser required those persons
				to inform consumers of its availability; whether, upon learning of the
				unavailability of a particular consumer item, the advertiser posted a notice,
				proximate to the location of the unavailable item, stating the procedure for
				obtaining a raincheck; and whether the advertiser posted, in a clear and
				conspicuous central location in the advertiser's store, a notice respecting the
				store's obligations to deliver a raincheck or substitute.
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Pricing and Advertising of Consumer Items › Section R. 14.206 - Catalogs, media commercials, circulars, or newspaper inserts prepared prior to dissemination

Current through Vol. 24-12, July 15, 2024
Rule 6.
(1) When an
				advertiser prepares, or causes to be prepared, an advertisement in the form of
				a catalog, television or radio commercial, circular, or an insert to a
				newspaper, which advertisement must be printed or submitted not less than 10
				days prior to its dissemination to the public, and the advertisement offers to
				sell consumer items at a sale price, a special price, or at a price reduced by
				an amount or proportion, and the consumer items are readily and conspicuously
				made available for sale at a price other than the advertised sale price,
				special price, or reduced price during the interim period between the time of
				printing and the dissemination of the advertisement to the public, the
				advertiser is not required to disclose in the advertisement the numeric
				quantity available if the advertiser:
(a)
				Clearly and conspicuously discloses the period of time the consumer items are
				available for sale.
(b) Makes
				available a raincheck to any person who seeks to purchase the consumer item
				during the advertised period of sale, or substitutes an equal or greater
				monetary value for the advertised item, if the consumer items are not intended
				to be liquidated as part of a clearance or close out sale, or a sale of similar
				import or meaning.
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Pricing and Advertising of Consumer Items › Section R. 14.207 - Clearance and close out sales

Current through Vol. 24-12, July 15, 2024
Rule 7.
(1) In
				connection with advertising offering consumer items pursuant to either a
				clearance or close out sale, where the advertiser is, or will be, unable to
				either give a raincheck or substitute an item of equal or greater monetary
				value, the advertiser shall disclose the quantity on hand and available during
				a disclosed period of sale. However, where the sale is announced in an
				advertisement required to be produced not less than 10 days prior to
				publication, the numeric quantity to be disclosed is that amount on hand at the
				time of preparation of the advertisement if the sale items are in fact made
				readily and conspicuously available for sale during the interim period between
				preparation and publication and the advertisement discloses as of what date
				that numeric quantity was determined; but if the sale items are not made
				readily and conspicuously available during the interim period, then the numeric
				quantity stated in the advertisement shall be equal to the greater of those
				actually on hand at time of preparation of the advertisement or actually on
				hand at time of publication.
(2) In
				connection with a "clearance" or "close out" sale, an advertiser with more than
				1 store, branch, or outlet participating in the sale shall make readily and
				conspicuously available in each store, branch, or outlet a reasonable number of
				each consumer item subject to the sale, unless a disclaimer, as provided in
				R 14.208(2)(a) or
				(b), is set forth.
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Pricing and Advertising of Consumer Items › Section R. 14.208 - General and specific disclaimers; evasions of act or rules

Current through Vol. 24-12, July 15, 2024
Rule 8.
(1) General
				disclaimers in advertising relating to product availability shall not
				constitute compliance with the disclosure provisions of the act or these rules
				where the disclaimers, when used, are relied upon by a participating dealer or
				store to evade the obligations imposed by the act or these rules. Examples of
				such "general disclaimers" include the following:
(a) "Not all items available at all
				stores."
(b) "Available at most
				stores."
(c) "Available at
				participating stores."
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Pricing and Advertising of Consumer Items › Section R. 14.209 - Enforcement and administration of act and rules

Current through Vol. 24-12, July 15, 2024
Rule 9.
(1) The act
				and rules shall be enforced and administered by the department of attorney
				general, consumer protection division, or such other division of the department
				as from time to time is designated by the attorney general.
(2) The consumer protection division is
				located at the Law Building, Lansing, Michigan 48913.
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Pricing and Advertising of Consumer Items › Section R. 14.210 - Assurance of discontinuance

Current through Vol. 24-12, July 15, 2024
Rule 10.
(1) When
				the attorney general or prosecuting attorney has information indicating that a
				person may have engaged, is engaging, or is about to engage in a method, act,
				or practice which may involve violation of the act, and if he deems the public
				interest shall be fully safeguarded thereby, the attorney general or
				prosecuting attorney may afford the person the opportunity to negotiate
				informally an assurance of discontinuance.
(2) In determining whether the public
				interest is safeguarded by an assurance of discontinuance, the attorney general
				shall consider:
(a) The nature and gravity of
				the alleged violation.
(b) The
				prior record and good faith of the parties involved.
(c) Other factors, including, where
				appropriate, adequate assurance of voluntary compliance.
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Pricing and Advertising of Consumer Items › Section R. 14.211 - Declaratory ruling

Current through Vol. 24-12, July 15, 2024
Rule 11.
(1) A
				person may request a declaratory ruling from the attorney general as specified
				in section 63 of Act No. 306 of the Public Acts of 1969, being S24.263 of the
				Michigan Compiled Laws, with respect to determining whether a course of action
				is in compliance with the act or these rules. The attorney general shall
				consider the requests and, where practical, make a declaratory ruling. A
				request for a declaratory ruling is inappropriate where:
(a) The same, or substantially the same,
				course of action is under investigation, or is, or has been, the subject of a
				current action, order, judgment, or decree initiated or obtained by the
				attorney general.
(b) The course of
				action, or its effects, may be such that an informed decision thereon cannot be
				made, or can be made only after extensive investigation, clinical study,
				testing, or collateral inquiry.
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Soliciting Agencies › Section R. 400.241 - Sound financial accounting; use of funds

Current through Vol. 24-12, July 15, 2024
Rule 241. The charitable organization must show sound
				  financial accounting, and show that all moneys expended have been applied to
				  the carrying out of the announced purpose for which the agency is organized, or
				  for which the solicitation was held. Where the amount received from
				  solicitations during the fiscal year of the charitable organization is less
				  than $15,000.00, the report of audit submitted in connection with an
				  application for the annual license may be a detailed statement sworn to by 2 or
				  more officers of the organization. In all other cases, an audit of the complete
				  operation of the charitable organization by a certified public accountant and
				  certified, as to correctness, by him is required. The organization must adopt
				  controls of income to make it possible for the certified public accountant to
				  attest to the correctness of the amount shown as received, or including all
				  receipts.
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Soliciting Agencies › Section R. 400.243 - Michigan certificate of authority for foreign corporations

Current through Vol. 24-12, July 15, 2024
Rule 243. No license will be granted to a charitable
				  organization, institution, or association incorporated under the laws of
				  another state to make public solicitations in Michigan unless it has obtained a
				  certificate of authority to do business in Michigan issued by the Michigan
				  corporation and securities comission.
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Soliciting Agencies › Section R. 400.244 - "Formed for a charitable purpose"; restrictions as to membership of controlling board

Current through Vol. 24-12, July 15, 2024
Rule 244. No organization, institution, association, or
				  corporation, regardless of its statement of purpose, shall be considered as
				  formed for a charitable purpose where more than 1/3 of the members of the board
				  of directors or trustees consists of persons who either are receiving
				  remuneration from the organization, institution, association, or corporation or
				  have spouses, parents, or children so receiving.
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Soliciting Agencies › Section R. 400.245 - Same; restrictions as to dividends; dissolution

Current through Vol. 24-12, July 15, 2024
Rule 245. No organization, institution, association, or
				  corporation, regardless of its statement of purpose, shall be considered as
				  formed for a charitable purpose if dividends are distributed to members or
				  stockholders or if, upon dissolution, the net assets are to be so distributed
				  in whole or in part.
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Soliciting Agencies › Section R. 400.245a - Definitions

Current through Vol. 24-12, July 15, 2024
Rule 245a.
(1) The
				meaning of the word "charitable" in the phrase "charitable purpose" shall
				include "philanthropic," "social service," "benevolent," and
				"patriotic."
(2) A church is an
				ecclesiastical corporation, or an association organized primarily for public
				worship and protected in its organization by a specific Michigan
				statute.
(3) A charitable
				organization is church-sponsored where a single church has legal control of the
				organization or contractual control of the solicitation.
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Franchises › Part 1 - GENERAL PROVISIONS › Section R. 445.101 - Definitions and explanations of terms

Current through Vol. 24-12, July 15, 2024
Rule 101.
(1)
				  "Act" means Act No. 269 of the Public Acts of 1974, being S445.1501 et seq. of
				  the Michigan Compiled Laws. Terms defined in the act have the same meanings
				  when used in these rules. Terms defined and explained herein have the same
				  meanings when used in either the act or these rules.
(2) The words "fee or charge" as used in
				  section 3(1) of the act include, but are not limited to:
(a) Present payments, deferred payments, and
				  royalty payments required of the franchisee by the franchisor arising from
				  sales of goods or services offered by the franchisee or its agents or
				  affiliates, or payments as a condition to maintaining the franchise
				  relationship other than payment for goods at a bona fide wholesale
				  price.
(b) Payments for a lease or
				  sale of real property in excess of a fair rental or market value. Among the
				  criteria for evaluation of fair rental or market value shall be the location of
				  the property, the physical attributes of the property, and what other lessees
				  or purchasers have paid for similar property in comparable locations.
(c) Payments for services. These payments are
				  presumed to be in part for the right granted to the franchisee to engage in the
				  franchise business. Ideas, instruction, training, and other programs are
				  services and not goods, irrespective of whether offered, distributed, or
				  communicated by word of mouth, through instructions or lectures, in written or
				  printed form, by record or tape recording, or any combination
				  thereof.
(d) Payments for
				  ownership. These payments include transfer of a controlling interest in a
				  business entity which holds a franchise, except those transfers where the
				  franchise held is not the principal asset of the transferor and not part of a
				  plan of distribution of franchises.
(e) Minimum purchase or minimum inventory
				  requirements other than at a bona fide wholesale price for which there is a
				  well-established market in this state.
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Franchises › Part 2 - REGISTRATION REQUIREMENTS › Section R. 445.201 - Documents accompanying application for registration or notification of exemption

Current through Vol. 24-12, July 15, 2024
Rule 201. Without limiting the administrator's power to
					 require additional information under section 8(t) of the act, an application
					 for registration of a franchise, or a notification of an exemption pursuant to
					 section 6(2)(a) or (b) of the act, shall be accompanied by:
(a) Upon request of the administrator, a copy
				  of the current articles of incorporation and annual reports and amendments
				  thereto, except that in the case of a partnership, the certificate of
				  co-partnership shall be submitted. In the case of doing business under an
				  assumed name, the assumed name certificate shall be submitted.
(b) A copy of any contractual agreement
				  between the franchisor and franchise broker-agent relating to the sale of a
				  franchise.
(c) A copy of the
				  typical current franchise contract.
(d) A copy of the operations manual and
				  policy manual, or their equivalent. The administrator shall, upon request,
				  retain those portions of the document containing trade or business secrets as a
				  confidential document.
The administrator may, in its discretion, return an
					 operations manual and policy manual, or their equivalent, if a determination is
					 made that the document does not contain information necessary to establish
					 legal or economic relationships between the franchisee and franchisor. The
					 administrator may require delivery of portions to each prospective franchisee
					 at least 1 week prior to sale. The franchisor may require execution by that
					 prospective franchisee of an agreement of confidentiality on a form acceptable
					 to the administrator.
(e)
				  Other documents or information necessary to establish the legal and economic
				  relationships to be created between the franchisee and franchisor.
(f) Documents or information filed with the
				  federal trade commission under its franchise disclosure requirements.
(g) An irrevocable consent to service of
				  process, pursuant to the act, in the prescribed form, or in a uniform form
				  satisfactory to the administrator containing substantially the same
				  provisions.
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Franchises › Part 2 - REGISTRATION REQUIREMENTS › Section R. 445.202 - Offering prospectus

Current through Vol. 24-12, July 15, 2024
Rule 202. The offering prospectus shall be in the format
					 and contain the information prescribed by the administrator. The form shall be
					 available to the applicant at the administrator's office.
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Franchises › Part 2 - REGISTRATION REQUIREMENTS › Section R. 445.203 - Periodic reports of sales

Current through Vol. 24-12, July 15, 2024
Rule 203. When the administrator deems necessary to assure
					 compliance with sections 5 or 6 of the act, it may by order require that a
					 registrant or person exempt pursuant to section 6(2)(a) or (b) of the act file
					 periodic reports of sales in a format prescribed by the
					 administrator.
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Franchises › Part 2 - REGISTRATION REQUIREMENTS › Section R. 445.204 - Conditions regarding sales

Current through Vol. 24-12, July 15, 2024
Rule 204. In lieu of entry of a stop order pursuant to
					 section 13 of the act, the administrator may impose conditions regarding the
					 sale of franchises as necessary for the protection of the
					 public.
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Franchises › Part 2 - REGISTRATION REQUIREMENTS › Section R. 445.205 - List of franchisees and current business addresses

Current through Vol. 24-12, July 15, 2024
Rule 205. The franchisor shall at all times maintain a list
					 of franchisees with current business addresses and provide the list to the
					 administrator promptly upon request.
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Franchises › Part 2 - REGISTRATION REQUIREMENTS › Section R. 445.206 - Reports required

Current through Vol. 24-12, July 15, 2024
Rule 206. Pursuant to the authority granted by sections
					 8(g), (r), and (t) of the act, the administrator may require franchisors,
					 directly or indirectly offering to sell or selling franchises in this state
					 under section 6(1) of the act, to file with the administrator, within a period
					 of 120 days from the last date of its fiscal year, both of the
					 following:
(a) A copy of their annual
				  report, if any, and audited certified financial statements, or unaudited
				  financial statements prepared by a certified public accountant if the
				  requirement for audited financial statements has been waived by the
				  administrator.
(b) A graphic
				  representation of specific geographical sites sold to franchisees in Michigan
				  in the last fiscal year, either by the franchisor or with franchisor approval
				  of location.
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Franchises › Part 2 - REGISTRATION REQUIREMENTS › Section R. 445.207 - Failure to process application

Current through Vol. 24-12, July 15, 2024
Rule 207. For purposes of section 13(h) of the act, an
					 applicant has failed to diligently process an application when 7 consecutive
					 months have elapsed since the submission of an application that has not become
					 effective.
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Franchises › Part 2 - REGISTRATION REQUIREMENTS › Section R. 445.208 - Revising, amending, or supplementing prospectus or operations manual; review

Current through Vol. 24-12, July 15, 2024
Rule 208.
(1) If
				  the prospectus, operations manual, or a part thereof becomes misleading as to a
				  material fact, or omits to state a material fact necessary in order to make the
				  statement made, in the light of the circumstances under which they are made,
				  not misleading, it shall be revised or supplemented, and the revision or
				  supplement shall be submitted to the administrator prior to use.
(2) The administrator shall promptly review
				  the amendment and advise the registrant when the administrator's objection to
				  the use of the amended prospectus ceases. An offer or sale shall not be made
				  prior to notification by the administrator.
(3) If the registration renewal statement, or
				  an amendment to an application for registration or notification of an
				  exemption, alters the text of the offering prospectus, or of an item, exhibit,
				  or other document previously filed as a part of an application for
				  registration, or notification of an exemption, the changes in the text shall be
				  indicated by means of underscoring or in some other appropriate
				  manner.
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Franchises › Part 2 - REGISTRATION REQUIREMENTS › Section R. 445.210 - Fees

Current through Vol. 24-12, July 15, 2024
Rule 210.
(1) The
				  fee for filing an application for registration with the department shall be
				  $500.00. The annual renewal registration fee shall be $250.00. The payment
				  shall be in the form of check or money order made payable to the "State of
				  Michigan" and shall not be postdated.
(2) The fee for filing a notification of
				  exemption with the department for a transaction exempted from registration
				  shall be $100.00 and shall be in the form of check or money order payable to
				  the "State of Michigan" and shall not be postdated. The fee for filing a
				  notification of exemption pursuant to section 6(2)(h), 6(2)(j), or 7 of the act
				  shall be $10.00.
(3) If a company
				  offers 2 or more franchises which are sufficiently similar in nature that it is
				  feasible, in the opinion of the administrator, to combine the required
				  application document and prospectus in a single application for registration,
				  it may, at the request of the franchisor, authorize the filing of a single
				  application for registration covering the similar franchises and the payment of
				  a single filing fee covering the franchises.
(4) If a company offers 2 or more franchises
				  which are sufficiently dissimilar that a single registration would tend to
				  confuse prospective franchisees, the administrator may require separate
				  registrations for each franchise and the payment of a separate fee for each
				  franchise.
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Franchises › Part 2 - REGISTRATION REQUIREMENTS › Section R. 445.211 - Effectiveness of first filings

Current through Vol. 24-12, July 15, 2024
Rule 211.
(1) A
				  franchise offering which becomes effective between January 13, 1975, and June
				  30, 1975, shall be registered, unless the administrator approves a different
				  period of registration, for period determined according to the following
				  schedule:
If the Franchisor's Name
The Franchise Offering is Registered
Commences With:
or
Exeempted for a Period of:
A through H
15 months from the effective date of
registration or exemptions I through P
14 months from the effective date of
registration or exemptions Q through Z
13 months from the effective date of
registration or exemptions
(2) This rule shall not be of force and
				  effect on or after October 1, 1976.
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Franchises › Part 3 - ESCROW › Section R. 445.301 - Imposition of escrow

Current through Vol. 24-12, July 15, 2024
Rule 301. If the department finds that the applicant failed
					 to demonstrate that adequate financial arrangements were made to fulfill
					 obligations to provide real estate, improvements, equipment, inventory,
					 training, or other items included in an offering, the administrator may impose,
					 as a condition to registration or exemption, an escrow of not more than 100% of
					 the franchise fees and other funds paid by the franchisee or subfranchisor
					 until these obligations are fulfilled.
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Franchises › Part 3 - ESCROW › Section R. 445.302 - Escrow requirements

Current through Vol. 24-12, July 15, 2024
Rule 302. When an escrow is imposed in connection with the
					 registration or exemption of a franchise offering, the account shall comply
					 with the following requirements:
(a)
				  Checks shall be made payable to the depository approved by the
				  administrator.
(b) The account
				  shall be established in a bank or trust company acceptable to the
				  administrator, and the funds shall be kept and maintained in an account
				  separate and apart from the franchisor's business and personal
				  accounts.
(c) All proceeds so
				  deposited shall remain the property of the franchisee and shall not be subject
				  to any liens or charges by the escrow agent, or judgments, garnishments, or
				  creditor's claims against the franchisor until released to the franchisor as
				  hereinafter provided. This escrow is for the benefit of each franchisee in the
				  amount paid by each franchisee.
(d)
				  At the administrator's discretion, a statement indicating the status of the
				  escrow shall be furnished by the bank or trust company to the
				  administrator.
(e) A trust or
				  escrow agreement shall be entered into between the bank or trust company, and
				  the franchisor, which shall state that its purpose is to protect the franchisee
				  or subfranchisor and shall authorize the administrator to inspect the records
				  of the bank or trust company, as trustee, relating thereto, and shall state
				  that, upon order of the administrator or a court of competent jurisdiction, the
				  trustee shall release and pay over the funds, or a portion thereof, to the
				  franchisor, subfranchisor, or franchisee, as directed.
(f) The department, by its administrator,
				  shall execute an acknowledgment on the face of each escrow or trust agreement.
				  This acknowledgment indicates approval on the form and content of the
				  agreement, but shall not be construed to make the department a party
				  thereto.
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Franchises › Part 3 - ESCROW › Section R. 445.303 - Purchase receipts

Current through Vol. 24-12, July 15, 2024
Rule 303. When an escrow is imposed, the franchisor shall
					 deliver to each franchisee or subfranchisor a purchase receipt in a form
					 approved by the administrator. Purchase receipts shall be consecutively
					 numbered and prepared in quadruplicate: The original given to the franchisee or
					 subfranchisor, the first copy to the depository together with the payment
					 received, the second copy retained by the franchisor, and the third copy sent
					 to the administrator.
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Franchises › Part 3 - ESCROW › Section R. 445.304 - Release of escrowed funds

Current through Vol. 24-12, July 15, 2024
Rule 304.
(1) The
				  administrator shall authorize the depository to release to the franchisor those
				  amounts of the escrowed funds applicable to a specified franchisee or
				  subfranchisor upon a showing satisfactory to the administrator that the
				  franchisor has fulfilled its obligations under the franchise agreement to
				  establish the franchise, or that the escrow is not required for the protection
				  of the franchisee.
(2) An
				  application for an order of the administrator authorizing the release of
				  escrowed funds to the franchisor shall be verified and shall contain:
(a) A statement of the franchisor that
				  required proceeds from the sale of franchises have been placed with the
				  depository in accordance with the terms and conditions of the escrow
				  agreement.
(b) A franchisee's
				  verified statement of completion of franchisor's obligations for release of
				  funds from escrow.
(c) A statement
				  of the depository signed by an appropriate officer setting forth the aggregate
				  amount of escrowed funds placed with the depository when required by the
				  administrator.
(d) The names of
				  each franchisee or subfranchisor and the amount held in escrow for the account
				  of the franchisee or subfranchisor.
(e) A showing that the franchisor, with
				  respect to a franchise, the funds for which are sought to be released, has
				  completely performed obligations, cited by reference to the franchise agreement
				  and its provisions, to provide real estate, improvements, equipment, inventory,
				  training, or other items.
(f) Other
				  information the administrator may reasonably require.
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Franchises › Part 3 - ESCROW › Section R. 445.305 - Surety bond in lieu of escrow

Current through Vol. 24-12, July 15, 2024
Rule 305.
(1) In
				  lieu of the imposition of an escrow, a franchisor at his option may post a
				  surety bond of a surety company in the amount required by the administrator as
				  protection of the franchisees requires.
(2) The surety company must be authorized to
				  transact business in Michigan.
(3)
				  The administrator shall take into consideration the amount of the franchise
				  fees and other fees to be charged as well as the number of franchises to be
				  offered, granted, or sold in determining the initial amount of the surety bond
				  and shall amend the amount as public interest requires, using the same
				  factors.
(4) Should the franchisor
				  fail to complete the obligations under the franchise contract to provide real
				  estate, improvements, equipment, inventory, training, or other items included
				  in the offering, the surety company may pay the appropriate money to the
				  administrator or his designee, as obligee, for the benefit of all franchises in
				  accordance with their contribution of franchise and other fees or
				  amounts.
(5) If the surety bond
				  expires or is canceled and the franchisor is still under an obligation to
				  provide real estate, improvements, equipment, inventory, training, or other
				  items, the franchisor at his option may either post another surety bond or have
				  an escrow of franchise and other fees imposed by the administrator. Until
				  another surety bond acceptable to the administrator is purchased or escrow is
				  imposed, the franchisor shall not make any new sales.
(6) The state may be a party to the surety
				  bond and shall, through the administrator, review its form and
				  content.
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Franchises › Part 4 - EXEMPT TRANSACTIONS › Section R. 445.401 - Exemptions based on franchisor's net worth or initial investment

Current through Vol. 24-12, July 15, 2024
Rule 401.
(1)
				  Franchisors relying on the exemptions provided by section 6(2)(a) or (b) of the
				  act shall file the information required on the form and accompanying
				  instructions currently prescribed by the administrator, as well as the
				  documents listed in
				  R 445.201.
(2) A franchisor seeking to claim the
				  exemption provided by section 6(2)(a) or (b) of the act shall so state on the
				  cover of its prospectus and agree to abide by the prospectus delivery
				  requirements of section 16 of the act.
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Franchises › Part 4 - EXEMPT TRANSACTIONS › Section R. 445.402 - Exemptions based on limited number of offerees

Current through Vol. 24-12, July 15, 2024
Rule 402. The exemption provided by section 6(2)(k) of the
					 act shall pertain to only those franchisors who:
(a) Do not have more than 1 existing
				  franchise within or without the state prior to the offer of a franchise under
				  this part, and
(b) Provide
				  disclosure to the franchisee offeree as required in sections 5(1)(b) and 5(2)
				  of the act.
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Franchises › Part 4 - EXEMPT TRANSACTIONS › Section R. 445.403 - Reports to be filed

Current through Vol. 24-12, July 15, 2024
Rule 403.
(1)
				  Franchisors, directly or indirectly offering to sell or selling franchises in
				  this state under section 6(2)(a) or (b) of the act, shall file with the
				  administrator, within a period of 120 days from the last day of its fiscal
				  year, a copy of their annual report, if any, and an audited certified financial
				  statement or unaudited financial statement prepared by a certified public
				  accountant if the requirement for submission of an audited financial statement
				  has been waived by the administrator.
(2) A franchisor, directly or indirectly
				  offering to sell or selling franchises in this state under section 6(2)(a),
				  (b), or (j) of the act, shall file with the administrator, within a period of
				  120 days from the last day of its fiscal year, graphic representations of the
				  geographical locations sold to the franchisees in the state in the last fiscal
				  year.
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Franchises › Part 4 - EXEMPT TRANSACTIONS › Section R. 445.404 - Material changes to be reported

Current through Vol. 24-12, July 15, 2024
Rule 404. Franchisors whose franchises are exempted under
					 section 6(2)(a) or (b) of the act shall be required, as a condition of
					 maintenance of the exemption after confirmation thereof as required by the act,
					 to notify the administrator, in writing, within 30 days after the occurrence of
					 any material fact or material change affecting the
					 franchisor.
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Franchises › Part 4 - EXEMPT TRANSACTIONS › Section R. 445.405 - Sales and offers by existing franchisees

Current through Vol. 24-12, July 15, 2024
Rule 405.
(1) A
				  franchisee seeking to offer or sell a franchise for his own account, whose
				  franchisor is currently registered or exempted under section 6(2)(a) or (b) of
				  the act, shall comply with the following disclosure requirements by providing:
(a) The offeree with a copy of the
				  franchisor's current prospectus.
(b) Full access to the books and records of
				  the franchise in the actual or constructive possession of the
				  franchisee.
(c) Full disclosure
				  relating to the risks of the franchise of which the selling franchisee knows
				  and which are not readily apparent to an offeree considering the purchase of
				  that franchise.
(d) Additional
				  material information relating to the franchisor known to the present
				  franchisee.
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Franchises › Part 5 - FINANCIAL STATEMENTS › Section R. 445.501 - Accounting principles

Current through Vol. 24-12, July 15, 2024
Rule 501. A financial statement required to be filed in
					 connection with an application for registration under section 6(1) of the act
					 or for an exemption under section 6(2)(a) or (b) of the act shall be prepared
					 in accordance with generally accepted accounting principles. A financial
					 statement shall be audited by an independent certified public accountant,
					 except when the particular form or these rules permit the use of an unaudited
					 statement for an interim period or generally.
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Franchises › Part 5 - FINANCIAL STATEMENTS › Section R. 445.502 - Balance sheet; profit and loss statement; audit; auditor's opinion

Current through Vol. 24-12, July 15, 2024
Rule 502.
(1) The
				  financial statement required to be filed by a franchisor refers to:
(a) A balance sheet as of a date within 90
				  days prior to the date of the application.
(b) A profit and loss statement for each of
				  the 3 fiscal years preceding the date of the balance sheet and for the period,
				  if any, between the close of the last of the fiscal years and the date of the
				  balance sheet, unless this requirement is waived or modified by the
				  administrator.
Michigan Administrative Code › Department - Attorney General › Consumer Protection and Charitable Trusts Division › Franchises › Part 5 - FINANCIAL STATEMENTS › Section R. 445.503 - Waiver of audit; conditions and restrictions

Current through Vol. 24-12, July 15, 2024
Rule 503.
(1) The
				  administrator may, in his discretion, waive the requirement of audited
				  statements:
(a) For small franchisors when a
				  certified financial statement is not required for protection of the public, and
				  the franchisor agrees to furnish a certified audit within a reasonable
				  time.
(b) In extraordinary cases,
				  if the statements have been prepared by an independent certified public
				  accountant, and the administrator is otherwise satisfied as to the reliability
				  of the statements and as to the ability of the franchisor to perform future
				  commitments.