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Bill

HB 992

Business Regulation - Maryland Franchise Registration and Disclosure Law - Alterations (Franchise Reform Act)

2025 Regular Session Introduced by Marc Korman

Maryland modifies franchise registration and disclosure requirements to adjust regulatory standards for franchise business relationships and franchisor compliance obligations.

Hearing 3/25 at 1:00 p.m.
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Bill Summary · HB 992

Legislative bill overview

HB 992 modifies Maryland's franchise registration and disclosure requirements under the Franchise Registration and Disclosure Law. The bill adjusts regulatory standards for franchise relationships, including changes to registration procedures, disclosure timelines, and compliance obligations for franchisors operating in Maryland.

Why is this important

Franchise laws directly affect thousands of small business owners and investors who purchase franchise rights, as well as established franchise companies operating in the state. These regulations determine what information must be disclosed to prospective franchisees before they invest, influencing contract fairness and reducing information asymmetries between large franchisors and individual franchisees.

Potential points of contention

  • Balance between franchisor and franchisee protection: Changes to disclosure requirements or registration procedures could either strengthen protections for franchisees or reduce compliance burdens for franchisors, depending on specific amendments
  • Competitive impact: Altering registration standards may affect Maryland's competitiveness for franchise business headquarters or recruitment compared to neighboring states with different regulatory frameworks
  • Implementation complexity: Amendments to existing law require clear guidance; ambiguous modifications could create compliance confusion for franchise systems operating across multiple states

Compiled from official sources — confirm details with the bill’s official record.

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