Are you a resident of Michigan or a visitor looking for a franchise for sale? Well, the process can be very tricky especially if you don’t understand the rules governing franchises sale in Michigan. Buying a franchise is the best alternative if you are planning to start your own business. With an already established business, there is a good chance that your business venture will be a success. The former owner will have done a lot of work such as getting the right customers and filling all the required legal documents; your primary task will be to ensure the business remains profitable. Whether you are looking for a big or small enterprise, Michigan is the place for you.
Why Choose Michigan
Having Lansing as its capital city and many other great cities such as Detroit, Grand Rapids, Warren, Sterling Heights and a population of more than nine million a business venture in Michigan is bound to succeed. Another major factor has made Michigan a business state is the change in their tax structure which has lowered taxes on small businesses making Michigan one of the top states for businesses.
Many new businesses are growing immensely in Michigan. Buying an already established business will, however, be a success. Michigan has business opportunities in every field, but the most common ones are in the motor vehicle manufacturing, transportation equipment, and automotive parts and supplies fields. Michigan is not only a great place to do business, but it also offers an amazing lifestyle ranging from the vibrant urban communities to the adventurous outdoors such as visiting the four Great Lakes or the 18 million acres of forest.
Michigan is the best place for your business mostly because of its tax rates. It also has one of the largest exports networks which ensures faster and cheaper services and products for your customer. With its average cost of living, it is the best place for business and potential employees and their families. If you are searching for an area that guarantees your businesses success, Michigan is the place for you.
Laws Governing Franchises Sale in Michigan
Just like all states in the United States, Michigan has several rules that regulate the offer, sale, and purchase of franchises. Michigan laws make it clear that the franchisor and the franchisee must have agreement on how to franchise the business. This act applies to all oral arrangements or written meetings between the two parties. It includes the offer or sale of the franchise, franchise offering, the franchise agreement, sales of goods and services, promises to pay, security interests, advertising, construction, leases, and mortgages of personal property and servicing contracts.
An offer to purchase a franchise in the state must be subjected to the authorities. Once it is accepted, the franchisee can purchase and operate the business. The franchisor, on the hand, must register with the Department of Attorney General, Franchise Section before selling a franchise. The registration is referred to as a “Notice of Intent” and should include: the name of the franchisor, Franchisor’s business name, the principal business address and the type of business. This disclosure statement must be subjected to the authorities ten days before the sale is made. Failure to this the sale will not take place. The franchisor must pay a bill of $250. Michigan is a “notice only” state in the sense that the law only requires the franchisors to register with the Attorney General only once a year.
According to Michigan franchise laws, a person is not allowed to employ any device, scheme or artifice to defraud. It is prohibited to make a false statement of a material fact or omit to state a material fact that is necessary for the franchising activity. It also prohibits engaging in practices that lead to fraud or deceit.
Michigan is a state of opportunity and success. Many open franchises are available for sale. Visit the Michigan franchise documentary to get a list of all the franchises in the state. Before buying any franchise, ensure that you undertake a study to find out how the business is operating and the chances of success. Request for necessary documents such as licenses and bank statement. If the franchise is operating on debt or it is also hitting bankruptcy state, don’t invest in such a business. Make sure you carefully read the franchise agreement before committing to the business.