Bill > HB730

This bill, known as the Franchise Reform Act, makes several changes to Maryland's Franchise Registration and Disclosure Law. It extends the timeframe within which the Securities Commissioner, an official within the Office of the Attorney General, can take action against violations of franchise laws from 3 years to 5 years. Additionally, it mandates that certain franchise registration exemptions must be adjusted for inflation or deflation based on the Consumer Price Index, ensuring these exemptions remain relevant over time. The bill also alters the statute of limitations for legal actions related to franchise offers, allowing lawsuits to be filed up to 5 years after the franchise is granted, or within 2 years of the franchise's initial operations beginning, whichever is later, but no more than 3 years after the grant. Furthermore, it introduces a pilot program for fast-track review of franchise disclosure documents, aiming to improve efficiency, and requires a report on this program's effectiveness by September 30, 2031. Finally, the bill clarifies that franchisors cannot prevent franchisees from joining or associating with other franchisees for lawful purposes, and establishes penalties for violations of this provision.

Business and Industry

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0730?ys=2026RS