Opinion ID: 773732
Heading Depth: 2
Heading Rank: 4

Heading: Watkins's Claim Under the MFIL

Text: 31 The district court dismissed Watkins's claim under the Michigan Franchise Investment Law, Mich. Comp. Laws §445.1501 et seq., for failure to state a claim upon which relief can be granted. We review dismissals for failure to state a claim de novo. Gao v. Jenifer, 185 F.3d 548, 552 (6th Cir. 1999). We affirm a dismissal if, taking all the facts alleged by the plaintiff as true, the plaintiff can prove no set of facts entitling him to relief. Id. 32 The parties devoted their arguments at trial and on appeal to two questions: (1) whether Watkins could show that its distributorship was a franchise within the scope of the MFIL; and (2) whether the choice of law provision in the written contract deprived Watkins of a remedy under the Michigan statute. We need answer neither of these questions. In Cook v. Little Caesar Enters., Inc., 210 F.3d 653 (6th Cir. 2000), we held that a plaintiff who cannot prove reasonable reliance cannot recover under the MFIL. In Cook, the franchisee alleged that he was promised an exclusive territory and the right to open additional restaurants, and that the franchisor broke its promises. The written franchise agreement did not contain the alleged promises, but it did contain an integration clause. On these facts, we granted summary judgment for the franchisor. We held that the MFIL does require reasonable reliance. Id. at 659. We quoted with approval the Seventh Circuit's observation that it is simply unreasonable to continue to rely on representations after stating in writing that you are not so relying. Id. (quoting Hardee's of Maumelle, Ark., Inc., v. Hardee's Food Sys., Inc., 31 F.3d 573, 579 (7th Cir. 1994)). Because, for the reasons given above, we find as a matter of law that Watkins's reliance on Iams's parol promises was unreasonable, we hold that Watkins would be unable to prevail under the MFIL even if he can show the existence of a franchise and even if the choice of law provision in the written agreement does not bar his claim. Therefore, we hold that the district court did not err by dismissing the MFIL claim. 33