(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 State; or
(iv) the offer to buy is accepted in the State.
(b) (1) For purposes of this section, an offer to sell is made in the State if the offer:
(i) originates from the State; or
(ii) is directed by the offeror to the State and is received at the place to which it is directed.
(2) For purposes of this section, an offer to sell is not made in the State only because the franchisor circulates or there is circulated on the franchisor’s behalf in the State an advertisement in:
(i) a newspaper or other publication of general, regular, and paid circulation that has had two-thirds of its circulation outside the State during the past 12 months; or
(ii) a radio or television broadcast that originates outside the State and is received in the State.
(3) For purposes of this section, an offer to buy is accepted in the State when acceptance is communicated to the offeror in the State.
(4) For purposes of this section, acceptance is communicated to the offeror in the State when:
(i) the offeree directs acceptance to the offeror in the State reasonably believing the offeror to be in the State; and
(ii) the acceptance is received at the place to which it is directed.
(c) This subtitle does not apply to the renewal or extension of an existing franchise if there is no interruption in the operation of the franchised business.
Structure Maryland Statutes
Title 14 - Business Opportunities, Franchises, and Multilevel Distribution Companies
Section 14-202 - Legislative Policy
Section 14-203 - Scope of Subtitle
Section 14-204 - Subtitle in Addition to Other Law
Section 14-207 - Publication of Information
Section 14-208 - Investigations
Section 14-209 - Interpretive Opinions
Section 14-210 - Civil Enforcement of Subtitle
Section 14-211 - Criminal Proceedings Authorized
Section 14-212 - Miscellaneous Powers
Section 14-213 - Privilege Against Self-Incrimination
Section 14-214 - Registration Required; Exemptions
Section 14-215 - Applications for Registration
Section 14-217 - Escrow Requirements
Section 14-218 - Issuance and Effective Date of Registration
Section 14-219 - Term and Renewal of Registration
Section 14-220 - Amendments to Registration
Section 14-221 - Grounds for Issuing Stop Order
Section 14-222 - Notice; Hearing; Vacating or Modifying Stop Order
Section 14-223 - Copies of Documents to Franchisees
Section 14-224 - Records Required
Section 14-225 - Advertisements Offering Franchises
Section 14-226 - Release From Liability as Condition of Sale
Section 14-227 - Civil Liability
Section 14-228 - Offer or Sale of Franchise Without Registration
Section 14-229 - Fraud or Deceit; Untrue Statements or Omissions of Material Fact
Section 14-230 - False or Misleading Statement or Omission in Prospectus or Amendment
Section 14-232 - Failure to Notify Commissioner of Material Change