(a) In this subtitle the following words have the meanings indicated. (b) “Advertisement” means a communication that: (1) is published in connection with an offer to sell or sale of a franchise; and (2) is: (i) written or printed; (ii) made by means of a recorded telephone message; or (iii) spoken on radio, television, or similar communications media. (c) “Area franchise” means an […]
(a) The General Assembly finds that: (1) the widespread sale of franchises has created many investment and business problems; and (2) franchisees have suffered substantial losses when the franchisor or its representative has not given complete information about: (i) the franchisor-franchisee relationship; (ii) the franchise agreement; and (iii) the business experience of the franchisor or its representative. (b) The intent of this […]
(a) This subtitle applies to an offer to sell or sale of a franchise if: (1) the franchisee must pay a franchise fee of more than $100; and (2) (i) the offeree or franchisee is a resident of the State; (ii) the franchised business will be or is operated in the State; (iii) the offer to sell is made in the […]
The powers, remedies, procedures, and penalties of this subtitle are in addition to and not in limitation of any other powers, remedies, procedures, and penalties provided by law.
The Commissioner may delegate any power or duty of the Commissioner under this subtitle.
(a) The Commissioner may publish information about violations of this subtitle. (b) Under regulations that the Commissioner adopts, the Commissioner may make available to any person any information submitted to the Commissioner.
The Commissioner may: (1) investigate in or outside the State to: (i) determine if a person has violated this subtitle or a regulation adopted or order passed under it; (ii) adopt regulations or forms under this subtitle; or (iii) enforce this subtitle; and (2) require or allow a person to submit a written statement, under oath or otherwise as the […]
(a) On request, the Commissioner may issue an interpretive opinion. (b) (1) A request for an interpretive opinion shall be in writing. (2) The requester shall pay a fee of $100.
(a) (1) Whenever the Commissioner finds that a person has violated or is about to violate this subtitle or a regulation adopted or order passed under it, the Commissioner may order the person to cease and desist from the further offer to sell or sale of the franchise until the offer or sale complies with this subtitle. […]
(a) (1) The Commissioner may refer to the State’s Attorney evidence of a criminal violation of this subtitle. (2) With or without the referral of evidence, a State’s Attorney may bring appropriate criminal proceedings under this subtitle. (b) A criminal proceeding may not be brought more than 3 years after the alleged violation.
In connection with an investigation or proceeding under this subtitle, the Commissioner may: (1) administer oaths; (2) receive evidence; and (3) issue subpoenas for the attendance of witnesses to: (i) testify; or (ii) 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) Except as otherwise provided in this subtitle, a person must register the offer of a franchise with the Commissioner before the person offers to sell, through advertisement or otherwise, or sells the franchise in the State. (b) The registration requirement of this section does not apply to: (1) a transaction by an executor, administrator, sheriff, receiver, trustee […]
(a) Except as otherwise provided in this section, an applicant for registration shall: (1) file with the Commissioner: (i) an application in the form that the Commissioner requires; and (ii) a prospectus for the franchise; and (2) pay an application fee of $500. (b) Instead of the application for registration and prospectus described in subsection (a) of this section, the Commissioner […]
(a) The prospectus shall contain: (1) the material information set forth in the application for registration, as required by regulation of the Commissioner; and (2) any other disclosures that the Commissioner requires. (b) The prospectus shall state, in 10-point or larger bold type, that registration is not approval, recommendation, or endorsement by the Commissioner. (c) The prospectus shall include the […]
(a) If the Commissioner finds that it is necessary and appropriate for the protection of prospective franchisees or subfranchisors because a franchisor has not made adequate financial arrangements to fulfill the franchisor’s obligations under an offering, the Commissioner may require the franchisor to escrow franchise fees or other money paid by a franchisee or subfranchisor until […]
(a) The Commissioner shall register an offer of a franchise if it meets the requirements of this subtitle. (b) Unless a stop order is in effect, registration of the offer of a franchise automatically takes effect at: (1) noon on the 30th business day after an application for registration or the last amendment to it is filed; or […]
(a) (1) Unless registration of an offer of a franchise is renewed for a 1-year term as provided in this section, the registration expires on the first anniversary of its effective date. (2) However, the Commissioner by regulation or order may set a different term of registration. (b) (1) Before registration expires, the registrant periodically may renew it for an […]
(a) If there is a material change in the information that a registrant previously filed with the Commissioner, the franchisor shall: (1) file promptly with the Commissioner an application to amend the registration; and (2) pay a fee of $100. (b) The registrant shall sign and verify the application to amend the registration. (c) The Commissioner by regulation may state: […]
The Commissioner summarily may pass a stop order to deny, suspend, or revoke a registration if the Commissioner finds that: (1) there has been a violation of this subtitle or a regulation adopted under it; (2) the offer to sell or sale of the franchise would constitute misrepresentation to, deceit of, or fraud on the buyer; (3) a […]
