Franchising is a popular way to start a business, but it's essential to be aware of the laws and regulations that govern it in Baltimore County, Maryland. It's important to have a knowledgeable and experienced franchise attorney review your franchise agreement and negotiate the best terms on your behalf. The Maryland Code of Regulations (COMAR) outlines the laws governing franchising in the state. These laws are subject to frequent amendments and changes in interpretation, so it's important to stay up-to-date on the latest regulations.
Selling a franchise is often complex, so it's important to understand all of the rules and regulations that apply. Anyone who intends to sell or offer a franchise opportunity in Maryland must meet state and federal regulatory requirements, including registration requirements. This includes preparing a Franchise Disclosure Document (FDD) that complies with franchise registration and disclosure guidelines developed by the North American Securities Administrators Association. One of the franchising opportunities under state law allows for sub-franchising using “local franchises”. A local franchise is a contract in which the franchisor grants a subfranchisor the right to sell franchises on behalf of the franchisor. The franchise agreement should also protect you against potential lawsuits that may affect the franchise in general, such as issues related to trademarks. The Securities Division of the Maryland Attorney General's Office manages the franchise registry and enforces franchise laws.
Some companies may be exempt from certain regulations because the franchise fee is too low or because they won't be operating in Maryland. The franchise agreement should also include details about the services that the franchisor will provide you during your tenure, such as marketing materials, advertisements, and agreements with wholesale product suppliers. If you're looking to take advantage of these franchise opportunities in Baltimore County, it's important to contact a legal team that specializes in franchising. They can help you understand all of the laws and regulations that apply and ensure that your business is compliant with all applicable rules.