Section 14-214 - Registration required; exemptions. - Maryland Statutes

§ 14-214. Registration required; exemptions.
 

(a)  Registration required.- Except as otherwise provided in this subtitle, a person must register the offer of a franchise with the Commissioner before the person offers to sell, through advertisement or otherwise, or sells the franchise in the State. 

(b)  Exemptions.- The registration requirement of this section does not apply to: 

(1) a transaction by an executor, administrator, sheriff, receiver, trustee in bankruptcy, guardian, or conservator; 

(2) an offer to sell or sale of a franchise that is substantially similar to a franchise already owned by the offeree or buyer; and 

(3) any other transaction that the Commissioner exempts by regulation because: 

(i) the transaction is not within the purpose of this subtitle; and 

(ii) the registration of the transaction is not necessary or appropriate in the public interest or for the protection of investors. 

(c)  Sale for franchisee's or subfranchisor's own account.-  

(1) The registration requirement of this section does not apply to the offer to sell or sale of a franchise by a franchisee for the franchisee's own account, or the offer to sell or sale of the entire area franchise owned by a subfranchisor for the subfranchisor's own account. 

(2) A sale is not effected by or through a franchisor merely because a franchisor has a right to approve or disapprove a different franchisee. 

(d)  Claims of exemption.-  

(1) The Commissioner may require by regulation that a franchisor or subfranchisor who claims under subsection (b)(3) of this section to be exempt from the registration requirements of this section: 

(i) file with the Commissioner a notice of claim of exemption in the form that the Commissioner requires; and 

(ii) pay a fee of $250. 

(2) The franchisor or subfranchisor shall sign and verify the notice of claim of exemption. 
 

[An. Code 1957, art. 56, §§ 347, 348, 350; 1992, ch. 4, § 2; ch. 26, § 4.]