Section R. 445.506 - Delays; updated statement or informationRule 506.
(1) If amendments or other delays cause a financial statement to become more than 4 months old as of the effective date of the registration statement:(a) An updated financial statement, as of a date within 4 months of the effective date, shall be filed if the franchisor fails to have an established record of earnings or is currently showing losses or a weak financial condition.(b) A paragraph containing later information as to sales, net income, and financial condition may be added in lieu of updating the financial statement, in the discretion of the administrator, when the franchisor has an established record of earnings and is in sound financial condition.(2) A financial statement shall be not more than 6 months old as of the effective date of the registration statement.(3) If a delay carries the effective date beyond the end of the franchisor's fiscal year, and by applying due diligence the registrant and accountant may complete the audit prior to the effective date, a certified statement shall be filed as of the end of the fiscal year.Mich. Admin. Code R. 445.506