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LAWS OF MARYLAND

Ch. 635

The Commissioner may issue summarily a stop order
denying the effectiveness of or suspending or revoking
effectiveness of any registration if he finds ANY OF THE
FOLLOWING:

(1)  There has been a failure to comply with any
of the provisions of this law or the rules and regulations
of the Commissioner;

(2)  The offer or sale of the franchise would
constitute misrepresentation to, or deceit or fraud of the
purchasers;

(3)  Any person identified in the application has
been convicted of an offense under subsection (5) of § 349,
or is subject to an order, or has had a civil judgment
entered against him as described in subsection (5) of § 349,
and the involvement of this person in the sale or management
of the franchise creates an unreasonable risk to prospective
franchisees;

(4)  THE PROSPECTUS OR ANY AMENDMENT THERETO IS
INCOMPLETE OR INACCURATE IN ANY MATERIAL RESPECT;

(5)  THE PROSPECTUS OR ANY AMENDMENT THERETO
INCLUDES ANY FALSE OR MISLEADING STATEMENT OF A MATERIAL
FACT OR OMITS TO STATE ANY MATERIAL FACT REQUIRED TO BE
STATED THEREIN OR NECESSARY TO MAKE THE STATEMENTS THEREIN
NOT MISLEADING;

(6)  ANY PERSON IN THIS STATE IS ENGAGING IN OR
ABOUT TO ENGAGE IN FALSE, FRAUDULENT, DECEPTIVE PRACTICES,
OR ANY DEVICE, SCHEME, OR ARTIFICE TO DEFRAUD IN CONNECTION
WITH THE OFFER OR SALE OF THE FRANCHISE;

(7)  THE FINANCIAL CONDITION OF THE FRANCHISOR
AFFECTS OR WOULD AFFECT THE ABILITY OF THE FRANCHISOR TO
FULFILL OBLIGATIONS UNDER THE FRANCHISE OR OTHER AGREEMENT
AND THE FRANCHISOR IS UNABLE OR UNWILLING TO COMPLY WITH, OR
HAS FAILED TO COMPLY WITH, ANY RULE, ORDER, OR
ADMINISTRATIVE DETERMINATION OF THE COMMISSIONER ISSUED
UNDER THE PROVISIONS OF SECTION 351; OR

(8) THE FRANCHISOR'S ENTERPRISE OR METHOD OF
BUSINESS INCLUDES OR WOULD INCLUDE ACTIVITIES WHICH ARE
ILLEGAL WHERE PERFORMED.

354.

If a stop order is not in effect under this subtitle,
registration of the offer of franchises automatically
becomes effective at 12 o'clock noon of the [fifteenth]
THIRTIETH business day after the filing of the application
for registration or the last amendment to it, or at an
earlier time as the Commissioner determines.

357.