HARRY HUGHES, Governor

2219

CHAPTER 635

(House Bill 1225)

AN ACT concerning

Franchises - Registration, Disclosure, and
Prohibited Practices

FOR the purpose of altering the applicability of certain
provisions of Article 56 "Licenses" relating to
franchises to include an offer to sell, or acceptance
of an offer to sell a franchise made in this State;
prohibiting certain fraudulent acts in connection with
the offer or sale of any franchise in this State;
allowing the Securities Commissioner to summarily issue
a stop order denying the effectiveness of, or suspend,
or revoke a franchise registration for certain errors
in a prospectus, certain deceptive practices or a
franchisor's failure to comply with certain rules and
regulations of the Commissioner; altering the time in
which a registration of an offer of franchise
automatically becomes effective following proper
application for registration; requiring a franchisor to
provide a franchisee with certain information regarding
the franchise within a certain period of time prior to
sale; allowing the Securities Commissioner to take
certain actions against certain persons who have
engaged, or are about to engage in any act or practice
which violates Article 56, Sections 345 through 365,
inclusive, or any rule, regulation, or order
promulgated under this subtitle; allowing the
Securities Commissioner to make and enforce certain
rules and regulations, engage in public or private
investigations, require or permit certain persons to
file written statements under oath in certain
investigations, and to publish information concerning
this subtitle; imposing certain civil and criminal
liability on certain persons for acts done in
connection with the offer or sale of a franchise and
providing for the enforcement of the liability created;
and relating generally to the offer or sale of a
franchise in the State of Maryland.

BY repealing and reenacting, with amendments,

Article 56 - Licenses

Section 345(m), 347, 353, 354, 357, 359, and 363

Annotated Code of Maryland

(1979 Replacement Volume)

BY repealing

Article 56 - Licenses
Section 364 and 365