Maryland franchise law update

Maryland’s franchise law is updating.  Previously under Maryland law, a franchisor’s FDD had to be delivered at the earlier of the first personal meeting held to discuss the franchise sale or at least 10 business days before the prospective franchisee signed a binding agreement with, or made a payment to the franchisor or an affiliate in connection with the proposed franchise sale. However, as of October 1, 2010 Maryland will start to follow the Federal Trade Commissions  franchise rule and require that the FDD be delivered at the earlier of: (i) 14 calendar days before the signing any binding agreement with the franchisor or paying any consideration relating to the franchise relationship; or (ii) a prospective franchisee’s reasonable request to receive a copy of the FDD. If you are a franchisor, make sure your attorney knows this new rule change for Maryland and updates your FDD for compliance.  If you are a franchisee in Maryland, please make sure you speak with a qualified franchise attorney who understands the changes in Maryland’s law.  As always, our legal team is prepared to assist you with updating your FDD and reviewing your franchise purchase.  If you need any assistance, please contact our Austin, TX office or our Tampa, FL offices at 866-99Franchise.