(a) After passing a stop order, the Commissioner promptly shall send to the applicant or registrant a notice that: (1) states that the stop order has been passed; (2) states the reasons for the stop order; and (3) informs the applicant or registrant of the right to a hearing under this section. (b) (1) The applicant or registrant may submit to […]
A franchisor may not sell a franchise in the State without first giving a prospective franchisee a copy of the offering prospectus and a copy of each proposed agreement that relates to the sale of the franchise at the earlier of: (1) 14 calendar days before the execution by the prospective franchisee of any binding agreement […]
Each franchisor or subfranchisor shall keep a complete set of records of each sale of a franchise.
A person may not publish an advertisement offering to sell a franchise subject to registration under this subtitle unless: (1) the person submits a copy of the advertisement to the Commissioner for review at least 7 business days before the first publication of the advertisement unless the Commissioner by regulation or order allows a later submission; […]
As a condition of the sale of a franchise, a franchisor may not require a prospective franchisee to agree to a release, assignment, novation, waiver, or estoppel that would relieve a person from liability under this subtitle.
(a) (1) A person who sells or grants a franchise is civilly liable to the person who buys or is granted a franchise if the person who sells or grants a franchise offers to sell or sells a franchise: (i) without the offer of the franchise being registered under this subtitle; or (ii) by means of an untrue statement […]
(a) Except as otherwise provided in this subtitle, a person may not offer to sell, through advertisement or otherwise, or sell a franchise in the State unless the offer of the franchise has been registered under this subtitle. (b) A person who willfully sells a franchise knowingly violating this section is guilty of a felony and, on […]
(a) In connection with an offer to sell or sale of a franchise, a person, directly or indirectly, may not: (1) employ a device, scheme, or artifice to defraud; (2) make an 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 […]
(a) In a prospectus or amendment to it, a person may not willfully make a false or misleading statement of a material fact or willfully omit to state a material fact required to be stated in the prospectus or amendment or necessary to make the statements in the prospectus or amendment not misleading. (b) A person who […]
(a) A person may not make or cause to be made an untrue statement of a material fact or omit to state a material fact in an application for registration, to amend registration, or for renewal or in a notice or report filed with the Commissioner under this subtitle. (b) A person who willfully sells a franchise […]
(a) A person may not fail to notify the Commissioner promptly of a material change as required by § 14-220 of this subtitle. (b) A person who willfully sells a franchise knowingly violating this section is guilty of a felony and, on conviction, is subject for each violation to a fine not exceeding $10,000 or imprisonment not […]
This subtitle is the Maryland Franchise Registration and Disclosure Law.
