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MarylandHB 07302026 Regular SessionHouse

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

Sponsored By: Marc Korman (Democratic)

Signed by Governor

Business RegulationAttorney GeneralCommerce and Business -see also- ElectrComm; ForeignTr; etc.Commercial PropertyConsumer Price IndexDisclosureEthicsEvaluations and ReviewsFranchisesInternet -see also- Internet AccessLiabilityPenalties and Sentences -see also- Death PenaltyPilot ProgramsRecords -see also- Land Records; Vital RecordsRegistration -see also- Motor Vehicle RegistrationReportsRules and RegulationsStandards and Best PracticesStudies -see also- Commitees & Commissions; ReportsSunsetTime

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 2 benefits, 1 costs, 1 mixed.

Franchisees can join trade associations

Beginning October 1, 2026, franchisees have the right to join and take part in franchisee trade groups for any lawful purpose. Franchisors may not stop or limit that right. You may sue in circuit court for an injunction, damages, and attorney’s fees. You do not need to prove actual damages to get an injunction. File within two years of the violation or one year after you discover it. You may file where you live or where the franchise does business.

Shorter deadlines and limits on franchise suits

Beginning October 1, 2026, civil claims about false statements, omissions, or unregistered franchise sales have tighter filing deadlines. You must sue by the earlier of four years after the franchise was granted or two years after it first opened to the public. Only franchisees who live in Maryland, or franchises that operate or will operate in Maryland, can bring these claims.

Faster franchise disclosure renewals pilot

Beginning October 1, 2026, Maryland creates a Fast-Track Review Pilot for franchise disclosure renewals and incomplete filings. The Commissioner runs it, sets rules, and can use technology to speed reviews. The program lasts six years and ends September 30, 2032. The Commissioner must post a report by September 30, 2031.

Five-year enforcement cap and no inflation updates

Beginning October 1, 2026, the Commissioner cannot take enforcement action more than five years after a violation. Also, the net equity amounts used for the franchise registration exemption no longer update with inflation. That may slowly make the exemption harder to meet over time.

Sponsors & Cosponsors

Sponsor

  • Marc Korman

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 161 • No: 8

Senate vote • 4/13/2026

Third Reading Passed

Yes: 43 • No: 0 • Other: 2

House vote • 3/20/2026

Third Reading Passed

Yes: 118 • No: 8 • Other: 9

Actions Timeline

  1. Approved by the Governor - Chapter 413

    5/12/2026

  2. Returned Passed

    4/13/2026House

  3. Third Reading Passed (43-0)

    4/13/2026Senate

  4. Second Reading Passed

    4/9/2026Senate

  5. Favorable Adopted

    4/9/2026Senate

  6. Favorable Report by Finance

    4/9/2026Senate

  7. Referred Finance

    3/23/2026Senate

  8. Third Reading Passed (118-8)

    3/20/2026House

  9. Second Reading Passed with Amendments

    3/19/2026House

  10. Favorable with Amendments {193223/1 Adopted

    3/19/2026House

  11. Favorable with Amendments Report by Economic Matters

    3/19/2026House

  12. Hearing 2/25 at 1:00 p.m.

    2/3/2026House

  13. First Reading Economic Matters

    2/2/2026House

Bill Text

  • Enacted

    5/12/2026

    PDF

  • Third Reading

    3/19/2026

    PDF

  • First Reading

    2/2/2026

    PDF

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