(a) This subtitle applies to an offer to sell or sale of a business opportunity if: (1) the offeree or buyer is a resident of the State; (2) the business opportunity will be or is operated in the State; (3) the offer to sell is made in the State; or (4) the offer to buy is accepted in the State. […]
(a) This subtitle does not apply to: (1) a sale of an ongoing business if the owner of the business sells and intends to sell only that one business opportunity; (2) a not-for-profit sale, for less than $500, of sales demonstration equipment, materials, or samples; (3) an offer to sell or sale of a franchise registered or exempt from […]
The Commissioner may delegate any power or duty of the Commissioner under this subtitle.
To enforce this subtitle, the Commissioner may pass orders and adopt regulations and forms.
The Commissioner may: (1) publish information about violations of this subtitle and of regulations adopted and orders passed under it; (2) report to the appropriate law enforcement officer information about violations of this subtitle; and (3) help, develop, and hold programs of public education and information about this subtitle.
The Commissioner may investigate in or outside the State to: (1) determine if a person has violated this subtitle; (2) adopt regulations or forms under this subtitle; or (3) enforce this subtitle.
(a) The Commissioner may hold public hearings in connection with an investigation under this subtitle. (b) Unless otherwise provided in this subtitle or in regulations adopted under it, the Commissioner shall hold hearings authorized by this subtitle in accordance with Title 10 of the State Government Article.
(a) (1) Whenever the Commissioner determines that a person has engaged or is about to engage in an act or practice that constitutes a violation of this subtitle or a violation of a regulation adopted or order passed under this subtitle, the Commissioner may, without a prior hearing, pass a summary order directing the person to cease […]
In connection with a hearing, investigation, or other proceeding under this subtitle, the Commissioner may: (1) administer oaths; (2) receive evidence; and (3) issue subpoenas for the attendance of witnesses to testify or to produce evidence.
(a) A person is not excused from attending, testifying, or producing evidence before the Commissioner, in a proceeding brought by the Commissioner, or in obedience to a subpoena of the Commissioner on the ground that the testimony or evidence may: (1) tend to incriminate the person; or (2) subject the person to a penalty or forfeiture. (b) (1) If a […]
A person may not sell or offer to sell any business opportunity in the State or to any prospective buyer in the State unless the business opportunity is registered under this subtitle.
(a) In order to register a business opportunity, the seller shall file with the Commissioner one of the following disclosure documents: (1) a uniform franchise offering circular prepared in accordance with the guidelines adopted by the North American Securities Administrators Association, Inc., as amended through January 1, 1996; (2) a disclosure document prepared in accordance with the Federal […]
(a) A person may not sell or offer to sell a business opportunity unless a written disclosure document, filed under § 14–113.1(a) of this subtitle, is delivered to the buyer at least 10 full business days before the buyer executes a contract or an agreement that imposes a binding legal obligation on the buyer or the […]
(a) If a seller guarantees that a buyer will derive from a business opportunity income that will exceed the price paid for the business opportunity or represents that the seller will refund all or part of the price paid or repurchase the products, equipment, or supplies sold or leased by the seller if the buyer is […]
The seller shall: (1) file with the Commissioner an amendment to the documents previously submitted to the Commissioner whenever a material change in the required information occurs; and (2) pay a fee of $50 for filing the amendment.
(a) Unless the registration of a business opportunity is renewed for a 1-year term as provided in this section, the registration expires on the first anniversary of its effective date. (b) Before the registration expires, the registrant periodically may renew it for an additional 1-year term, if the registrant: (1) files with the Commissioner: (i) a renewal application on […]
(a) Each contract for the sale of a business opportunity shall be in writing. (b) The contract shall include: (1) the terms and conditions of payment; (2) a full and detailed description of the acts or services that the seller agrees to perform for the buyer; (3) the address of the seller’s principal office; (4) the name and address of the […]
(a) The Commissioner may pass an order denying effectiveness to, or suspending or revoking the effectiveness of, any registration if the Commissioner finds that the order is in the public interest and that: (1) (i) the registration as of its effective date, or as of any earlier date in the case of an order denying effectiveness, is incomplete […]
In connection with an offer to sell or sale of a business opportunity, a person may not make any untrue statement of a material fact or omit to state a material fact necessary in order to make the statement made, in light of the circumstances under which it is made, not misleading.
In connection with an offer to sell or sale of a business opportunity, a person may not engage in any act, practice, or course of business or employ any device, scheme, or artifice to defraud that operates or would operate as a fraud or deceit on another person.
