The Maryland Securities Division, which is responsible for enforcing Maryland’s franchise registration and disclosure law, recently announced that it has posted a new publication for franchisors with information about filing renewal and amendment applications.
Under the FTC’s Franchise Rule, a franchisor is permitted, but not required, to answer that all-important question asked by would-be franchise buyers: “how much money can I make?” Sometimes, the franchisor’s answer to that question can generate litigation.
One of the areas of franchise law that is often misunderstood by new and emerging franchisors is state advertising filing requirements. This article is a summary of how a franchisor can comply with franchise advertising filing laws.
Some franchisors continue to use a different Franchise Disclosure Document for each state that has a franchise or registration law. This approach increases the administrative burden on franchisors, as well as the risk of unintentional violation of a state’s franchise law where more than one state law applies to a transaction.