Franchising is a complex process that requires careful consideration of legal requirements. According to the Maryland Attorney General, the state is one of 15 that require the registration of franchise offers. These laws are designed to ensure that those who buy franchises have enough information to make an informed decision. Katherine Taylor, founder of Taylor Legal, has extensive experience in this area, having worked for 10 years as a senior deputy attorney for Howard County and 7 years as a commercial litigator in Whiteford, Taylor & Preston, a top-tier law firm in Baltimore, Maryland.
Before beginning any work, Baltimore County must receive and accept an original franchise agreement signed along with a check payable to the county for the full amount of the associated basic compensation (as shown in Annex C). The agreement should also protect you against potential lawsuits that may affect the franchise in general, such as issues related to trademarks. Part of this obligation includes preparing a franchise disclosure document (FDD) that complies with franchise registration and disclosure guidelines developed by the North American Securities Administrators Association. In addition, Maryland law allows subfranchising through “area franchising”, which is a contract in which the franchisor grants the subfranchisor the right to sell franchises on behalf of the franchisor. Selling a franchise is often complex, so Maryland's franchise laws and registration requirements have the same facets.
Anyone seeking to offer or sell a franchise opportunity in Maryland must meet state and federal regulatory requirements, including registration requirements. If you need help taking advantage of these franchise opportunities in Maryland, contact a legal team that specializes in franchising to get started. With their expertise and knowledge of the law, they can help you navigate the complexities of franchising and ensure that you are compliant with all applicable laws.