A Michigan Franchise Lawyer Your Business Can Trust
When franchise agreements go sour in Michigan, litigation typically arises between franchisors and franchisees. Despite parties’ counsel’s efforts to draft airtight contracts, the breakdown of a franchise relationship can easily lead to legal disputes and lawsuits.
Michigan’s Franchise Investment Law imposes various restrictions on franchisors, and violations of these restrictions may expose corporations to significant financial liability. Your business deserves an attorney with in-depth familiarity with Michigan franchise law. August Law can help.
Our firm has handled some of Michigan’s most complex and high-stakes legal disputes for several decades.
Principal attorney Gary August has compiled a record of outstanding success obtained for clients. He has earned a reputation for understanding challenging legal issues and communicating his clients’ positions to opposing parties, tribunals, and courts to secure victory at a fair cost.
Our firm has represented some of the largest corporations in the country, where we’ve learned what it takes to advocate for clients with complex and sizeable financial interests.
When pursuing litigation to resolve a dispute regarding a franchise, you need legal counsel with in-depth knowledge of Michigan’s Franchise Investment Law to help you protect your rights and interests.
Understanding Michigan Franchise Investment Law
The Michigan Franchise Investment Law regulates the offer, sale, and purchase of franchises and prohibits fraudulent or unfair business practices in the purchase, sale, and operation of franchises.
The law prohibits parties engaged in the filing, offer, sale, or purchase of a franchise from using any device/scheme/artifice to default, making any untrue statement of material fact, omitting any material fact necessary to make a statement not misleading, or engaging in any business practice that would defraud or deceive another party.
The law also requires franchisors to file annual notices with the state, except when offering franchises that meet one or more statutory exemptions. Franchisors must also provide prospective franchisees with a disclosure statement at least 10 days before closing on a franchise agreement.
This disclosure statement must provide basic information about the franchisor, including the franchisor’s business structure, financial statements, terms of the franchise agreement, and a breakdown of franchise fees.
The Franchise Law also specifies prohibited practices for franchisors, which include:
- Prohibiting franchisees from joining an association of franchisees
- Requiring franchisees to release their rights under the Franchise Law as a condition of entering a franchise agreement
- Refusing to permit franchisees to renew without fair compensation for the repurchase of the franchise or on the same terms available to similarly situated franchisees
- Requiring arbitration or litigation outside the state
Certain violations of the Franchise Law by franchisors may entitle a franchisee to financial damages up to and including rescission of the franchise purchase price. The law also authorizes the state to investigate potential violations by franchisors and institute enforcement actions to enjoin future violations and impose fines or prison time.
Types of Legal Disputes Under Franchise Law That We Handle
Here in the state of Michigan, our franchise law attorneys can assist you and your business in franchise-related disputes such as:
- Breach of franchise agreements, including disputes over the validity of a termination, non-compete provisions, misappropriation of IP, or breach of licenses
- Fee disputes, including disputes over the calculation of fees or claims of non-payment
- Breach of guarantees
- Racial/religious/sex discrimination
- Antitrust violations
- Franchisor fraud or unfair business practices
- Territory disputes
- Inadequate or inaccurate financial disclosures
- Enforcement of arbitration agreements
- Renewals
- Unfair or illegal franchisor practices, such as prohibiting franchisees from joining an association of franchisees
- Transfers of franchises in Michigan
- Regulatory investigation/enforcement actions by state officials
How Can a Michigan Attorney Assist You in a Franchise Dispute?
Disputes over parties’ rights and obligations in a franchise relationship, which often arise from differing interpretations of contract terms, can quickly escalate into costly litigation. An attorney from August Law can help you resolve a legal dispute involving a franchise agreement efficiently and at a reasonable cost.
Our experienced franchise lawyers have worked with numerous franchise agreements. Our deep knowledge of state franchise law enables us to review the terms of your agreements to advise you on your legal rights and options. We can help you gather and organize documents and evidence needed to prove your case, including financials and operational records, and collaborate with forensic accountants and other experts as necessary.
Our firm will take the time to review the facts of your case and understand your needs, financial concerns, and goals to develop a tailored legal strategy that pursues your desired outcomes without wasting time and money. However, our experienced litigators won’t hesitate to take your case to trial when necessary to advocate for a fair and favorable result.
Why Choose August Law for Your Franchise Case?
Franchise disputes and litigation can involve complex issues and high financial stakes. Hiring knowledgeable legal counsel can give you the best chance of obtaining a favorable outcome in your case. For years, business owners and corporations have turned to August Law for help in some of the most significant franchise litigation matters in Michigan because:
We Work Hard to Maintain a Record of Success
Everyone wants to hire a lawyer who wins. We win. We focus on obtaining successful outcomes for our clients, not running up legal bills. Few attorneys can say they’ve secured the largest settlement or verdict in the state in a given year. In 2010, Gary August obtained the largest reported settlement/verdict in Michigan, representing the City of Dearborn against one of the state’s largest contractors, recovering over $30 million in compensation while defeating claims totaling over $41 million against the city.
We’ve Earned Numerous Awards and Recognitions for Our Work
Gary August’s record of success has earned him and our firm top recognition from various legal organizations and publications, including recognition by Best Lawyers in America since 2013 and Michigan Super Lawyers since the publication’s founding. Mr. August holds an AV Preeminent rating from Martindale-Hubbell and a top 10.0 rating from Avvo, two of the country’s leading lawyer rating services.
We Have Extensive Knowledge
Many law firms claim to have extensive knowledge of a client’s legal issues but charge for “research time.” At August Law, we have a fundamental understanding of the law in your case before you walk through our doors. Gary August, our firm’s principal attorney, has litigated many complex legal matters for nearly three decades. Having represented various clients in diverse cases, Mr. August has a solid understanding of nearly every legal issue our clients may have.
We Win Ethically
Although we strive to win for our clients, we don’t win at “all costs.” We take the time to understand our clients’ needs and financial goals to ensure we provide legal representation at reasonable costs. We also never cut corners in handling a client’s legal matter and strive to act professionally when working with our clients, opposing parties and counsel, the courts, and the public.
Contact Us for an Initial Case Review to Discuss Your Legal Options
Because Michigan has one of the country’s most protective franchise laws, you need seasoned legal counsel to walk you through your legal options and advocate for your interests. Contact August Law today for a free, confidential consultation to learn how our legal team can protect your interests with our in-depth knowledge of Michigan’s franchise laws.
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