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MD HB730
Bill
Status
2/2/2026
Primary Sponsor
Marc Korman
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AI Summary
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Extends the statute of limitations for Securities Commissioner enforcement actions from 3 years to 5 years after a franchise violation occurs
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Modifies the timeframe for franchisees to bring civil liability actions to the earlier of 5 years after the franchise grant, or the later of 3 years after grant or 2 years after initial franchise operations begin
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Prohibits franchisors from restricting or inhibiting franchisees' right to join trade associations or freely associate with other franchisees for lawful purposes, with violations subject to injunctive relief, damages, and attorney's fees
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Establishes a 6-year Maryland Franchise Disclosure Document Renewal Fast-Track Review Pilot Program (effective October 1, 2026 through September 30, 2032) requiring the Securities Commissioner to develop standards for expedited review of franchise disclosure documents, with a report due by September 30, 2031
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Requires franchise registration exemption net equity thresholds under COMAR 02.02.08.10D.1 to be adjusted for inflation or deflation based on the Consumer Price Index for All Urban Consumers
Legislative Description
Business Regulation - Maryland Franchise Registration and Disclosure Law - Alterations (Franchise Reform Act)
Disclosure
Last Action
Hearing 2/25 at 1:00 p.m.
2/3/2026