Vol. 13 No. 4 | Fall 2010
INSIDE THIS EDITION
THE FRANCHISE LAWYER
Beata Krakus (2013)
Forum on Franchising
Maryland's New Franchise Delivery Requirements are Now in Effect
On October 1, 2010, the new franchise delivery requirements under the Maryland Franchise Law (Section 14-223) went into effect. As a result, Maryland's franchise delivery requirements no longer differ substantively from the FTC Franchise Rule. The new provisions, found at Chapter 168 of the Laws of Maryland of 2010, require a franchisor to deliver the required form of FDD at the earlier of: (a) 14 calendar days before a prospective franchisee signs a binding agreement with a franchisor or pays any consideration relating to the franchise relationship; or (b) a prospective franchisee's reasonable request for a copy of the FDD.
The Maryland Securities Commissioner issued an Interpretive Opinion/No Action Position, dated June 15, 2010, regarding the effect of this new law on franchise disclosure in Maryland. Now that the new delivery requirements have become effective, all franchisors registered in Maryland should have revised their FDD Receipt pages to delete any notice regarding Maryland-specific franchise delivery requirements.
You can find the Interpretive Opinion/No Action Position at:
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