Michigan Administrative Code
Department - Attorney General
Consumer Protection and Charitable Trusts Division
Franchises
Part 5 - FINANCIAL STATEMENTS
Section R. 445.512 - Statement of controlling company

Rule 512. A complete financial statement of a company controlling the franchisor shall be required when the controlling company guarantees to assume the duties and obligations of the franchisor under the franchise agreement. If the franchisor wishes to file a controlling company financial statement, the controlling company shall guarantee the obligations of the franchisor or post an acceptable surety bond at the discretion of the franchisor. Such surety bond must be purchased from a surety company authorized to transact business in the state of Michigan and in an amount required by the administrator as protection of the public requires. The amount may be amended by the administrator on the basis of the amount of fees and the number of franchises sold. If the surety bond is terminated or canceled while the franchisor is still under an obligation to provide real estate, improvements, equipment, inventory, training or other items, another surety bond acceptable to the administrator must be purchased or a guarantee acceptable to the administrator of the franchisor's obligations must be given before additional sales can be made.