2226

LAWS OF MARYLAND

Ch. 635

sale without complying with the provisions of this law, he
may order the franchisor or offeror of the franchise to
desist and refrain from the further offer or sale of the
franchise unless and until the offer is made in compliance
with this law. If, after issuance of an order, a request for
a hearing is filed in writing by the person to whom the
order is directed, a hearing shall be held. Unless the
hearing is commenced within 15 business days after the
request is made, or the person affected consents to a later
date, the order is rescinded.]

365.

(A)  A PERSON IS CIVILLY LIABLE TO THE PERSON BUYING OR
GRANTED A FRANCHISE FROM HIM IF HE:

(1)  OFFERS OR SELLS A FRANCHISE IN VIOLATION OF
SECTION 347(A); OR

(2)  OFFERS OR SELLS A FRANCHISE BY MEANS OF ANY
UNTRUE STATEMENT OF MATERIAL FACT OR ANY OMISSION TO STATE A
MATERIAL FACT NECESSARY IN ORDER TO MAKE THE STATEMENTS
MADE, IN LIGHT OF THE CIRCUMSTANCES UNDER WHICH THEY ARE
MADE, NOT MISLEADING, THE FRANCHISEE NOT KNOWING OF THE
UNTRUTH OR OMISSION, OR IF THE FRANCHISE AND IF THE
FRANCHISOR DOES NOT SUSTAIN THE BURDEN OF PROOF THAT HE DID
NOT KNOW, AND IN THE EXERCISE OF REASONABLE CARE COULD NOT
HAVE KNOWN OF THE UNTRUTH OR OMISSION.

(3)  TO ENFORCE ANY LIABILITY CREATED UNDER THIS
SECTION, AN ACTION MUST BE BROUGHT WITHIN 3 YEARS AFTER THE
PURCHASE OR GRANT OF THE FRANCHISE.

(B)  A PERSON WHO HAS BOUGHT OR BEEN GRANTED A
FRANCHISE MAY SUE UNDER THIS SECTION EITHER AT LAW OR IN
EQUITY TO RECOVER THE DAMAGES SUSTAINED BY REASON THEREOF.
THAT PERSON, IF SUCCESSFUL, SHALL ALSO BE ENTITLED TO THE
COSTS OF THE ACTION, INCLUDING REASONABLE ATTORNEYS' FEES.
THE COURT MAY ORDER THE FRANCHISOR OR SUBFRANCHISOR TO
RESCIND ANY FRANCHISE AND TO MAKE RESTITUTION TO THE PERSON
WHO PURCHASED OR WAS GRANTED A FRANCHISE.

(C)  EVERY PERSON WHO DIRECTLY OR INDIRECTLY CONTROLS A
PERSON LIABLE UNDER THIS SECTION, EVERY PARTNER IN A
PARTNERSHIP SO LIABLE, EVERY PRINCIPAL OFFICER OR DIRECTOR
OF A CORPORATION SO LIABLE, EVERY PERSON OCCUPYING A SIMILAR
STATUS OR PERFORMING SIMILAR FUNCTIONS, EVERY EMPLOYEE OF A
PERSON SO LIABLE WHO MATERIALLY AIDS IN THE ACT OR
TRANSACTION CONSTITUTING THE VIOLATION, IS ALSO LIABLE
JOINTLY AND SEVERALLY WITH AND TO THE SAME EXTENT AS SUCH
PERSON, UNLESS THE OTHER PERSON WHO IS SO LIABLE HAD NO
KNOWLEDGE OF OR REASONABLE GROUNDS TO BELIEVE IN THE
EXISTENCE OF THE FACTS BY REASON OF WHICH THE LIABILITY IS
ALLEGED TO EXIST.

365A.