# Business Regulation (GBR)

## Title 14. Business Opportunities, Franchises, and Multilevel Distribution Companies

### Subtitle 2. Franchises

#### Section 14-202

(a) The General Assembly finds that:

  (1) franchising has played a role in the State's economy by enabling residents to open and operate businesses in the State;

  (2) the widespread sale of franchises, while offering opportunities to State residents, also involves complex agreements and substantial investments that can create and have created many investment and business risks for franchisees, franchisors, and subfranchisors; and

  (3) franchisees may suffer losses when the franchisee has not been given complete and accurate information about:

    (i) the nature of the franchisor-franchisee relationship;

    (ii) the terms and obligations of the franchise agreement; and

    (iii) the business experience and operational practices of the franchisor or its representative.

(b) The intent of this subtitle is to:

  (1) give each prospective franchisee necessary information about any franchise offer;

  (2) promote honesty, transparency, and accountability in the offer and sale of franchises;

  (3) prevent practices that would result in fraud or a likelihood that the franchisor's representations would not be fulfilled;

  (4) protect the franchisor-franchisee relationship; and

  (5) support the continued growth of franchising as a business model in the State.

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Md. Code Ann., Bus. Reg. (as displayed at mgaleg.maryland.gov, October 16, 2026)