How to Find State Specific Franchise Laws for Maryland

Understanding the state specific franchise law of Maryland is vital if you wish to operate a franchise in the state. Franchises are subject to both federal laws and the laws of the state in which they operate. Additionally, your franchise agreement may require that Maryland law applies if the franchisor is located there, even if you will operate your franchise elsewhere. With focused research, you can find Maryland specific franchise law information in only a few hours.

Difficulty: Moderately Easy

Instructions

1. Visit the Maryland Attorney General website's Securities page (see Resources below) and read the passage under the Registration of Franchises heading. Notice that anyone wishing to offer a franchise must be officially registered with the state of Maryland, and must provide a franchisee with a copy of this registration.

2. Find all of the necessary information for franchise registration on the Maryland Franchisor Report (see Resources below).

3. Note that Maryland is one of 15 U.S. states that require franchisors to furnish potential franchisees with a United Franchise Offering Circular (UFOC) before the franchisee signs the Franchise Agreement. The type of information that must be included in the UFOC is strictly regulated by the U.S. Federal Trade Commission.

4. Find the full list of information that must be contained in a UFOC at the North American Securities Administrators Association (NASAA) website (see Resources below). This is the organization with which all UFOCs are filed.

5. Call the Maryland Securities Division at [phone] for more information on the business you are considering franchising with. You can also write to or visit the Maryland Franchise Office at 200 St. Paul Place--20th Floor, Baltimore MD 21202.

6. Call the Maryland Franchise Office for more information about Maryland franchise law at [phone].

Tips & Warnings

• If you are considering signing a franchise agreement, be sure to check if there is a choice of law provision. These provisions will tell you which state's laws will apply in the event of a dispute between you and the franchisor.
• A franchise lawyer is not required to enter a franchise agreement, but remember that the franchisor will certainly have lawyers on their side of the bargain.
• If you fail to properly follow Maryland franchise laws, you may be liable for damages to your franchisor under your franchise agreement.

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