HARRY HUGHES, Governor

2221

(3)  AN OFFER TO SELL IS MADE IN THIS STATE WHEN
THE OFFER EITHER ORIGINATES FROM THIS STATE OR IS DIRECTED
BY THE OFFEROR TO THIS STATE AND RECEIVED AT THE PLACE TO
WHICH IT IS DIRECTED. AN OFFER TO BUY IS ACCEPTED IN THIS
STATE WHEN ACCEPTANCE IS COMMUNICATED TO THE OFFEROR IN THIS
STATE; AND ACCEPTANCE IS COMMUNICATED TO THE OFFEROR IN THIS
STATE WHEN THE OFFEREE DIRECTS IT TO THE OFFEROR IN THIS
STATE REASONABLY BELIEVING THE OFFEROR TO BE IN THIS STATE
AND IT IS RECEIVED AT THE PLACE TO WHICH IT IS DIRECTED.

(4)  AN OFFER TO SELL IS NOT MADE IN THIS STATE
BECAUSE THE FRANCHISOR CIRCULATES OR THERE IS CIRCULATED ON
HIS BEHALF IN MARYLAND AN ADVERTISEMENT IN:

(I)  A BONA FIDE NEWSPAPER OR OTHER
PUBLICATION OF GENERAL, REGULAR, AND PAID CIRCULATION WHICH
HAS TWO-THIRDS OF ITS CIRCULATION OUTSIDE THIS STATE DURING
THE PAST 12 MONTHS; AND

(II)  A RADIO OR TELEVISION BROADCAST
ORIGINATING OUTSIDE THIS STATE WHICH IS RECEIVED IN
MARYLAND.

347.

(A)  Beginning July 1, 1977, it is unlawful for any
person to offer, through advertisement or otherwise, or sell
any franchise in this State unless the offer of the
franchise has been registered under this subtitle.

(B)  IT IS UNLAWFUL FOR ANY PERSON, IN CONNECTION WITH
THE OFFER OR SALE OF ANY FRANCHISE, TO DIRECTLY OR
INDIRECTLY:

(1)  EMPLOY ANY DEVICE, SCHEME, OR ARTIFICE TO
DEFRAUD;

(2)  MAKE ANY 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 UNDER
WHICH IT IS MADE, NOT MISLEADING;

(3)  ENGAGE IN ANY ACT, PRACTICE, OR COURSE OF
BUSINESS WHICH OPERATES OR WOULD OPERATE AS A FRAUD OR
DECEIT UPON ANY PERSON.

(C)  IT IS UNLAWFUL FOR ANY PERSON TO MAKE OR CAUSE TO
BE MADE ANY UNTRUE STATEMENT OF A MATERIAL FACT IN ANY
APPLICATION FOR REGISTRATION OR APPLICATIONS TO AMEND
REGISTRATION, RENEWAL STATEMENT, NOTICE, OR REPORT FILED
WITH THE COMMISSIONER UNDER THIS SUBTITLE, OR OMIT TO STATE
IN ANY APPLICATION, RENEWAL STATEMENT, NOTICE, OR REPORT
FILED WITH THE COMMISSIONER UNDER THIS SUBTITLE ANY MATERIAL
FACT, OR FAIL TO PROMPTLY NOTIFY THE COMMISSIONER OF ANY
MATERIAL CHANGE AS REQUIRED BY SECTION 361.

353.