MarylandSB 04152026 Regular SessionSenate

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

Sponsored By: Pamela Beidle (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

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

Franchisees can join trade groups freely

Franchisors may not stop franchisees from joining or forming a trade group of same-brand franchisees for any lawful purpose. You can sue in circuit court for an injunction, damages, and your reasonable attorney’s fees, and you do not need to show actual damages to get an injunction. You must file within 2 years of the violation or 1 year after you discovered it, whichever is earlier. This protection applies starting October 1, 2026.

Stricter deadlines and who can sue franchisors

To sue over a franchise sale, you must file by the earlier of 4 years after the franchise was granted or 2 years after the business opened to the public. Only a franchisee who lives in Maryland, or a franchised business that operates or will operate in Maryland, can bring the case. These rules apply beginning October 1, 2026.

Pilot speeds franchise disclosure renewals

Maryland runs a pilot to fast‑track renewals of franchise disclosure documents. The Securities Commissioner sets review rules, may review incomplete filings, and can use technology to speed reviews. The program starts October 1, 2026, and ends September 30, 2032. A public report is due by September 30, 2031.

No automatic inflation updates to registration exemption

The law ends automatic CPI‑based inflation updates to the net‑equity thresholds used in a franchise registration exemption. Thresholds are no longer adjusted by statute for inflation or deflation. This change applies starting October 1, 2026.

Longer window to enforce franchise rules

The Securities Commissioner can take enforcement action for up to 5 years after a franchise rule is broken. Before, the limit was 3 years. This change applies to franchise registration and disclosure rules beginning October 1, 2026.

Sponsors & Cosponsors

Sponsor

Pamela Beidle
Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 158 • No: 10

House vote • 4/13/2026

Third Reading Passed

Yes: 113 • No: 10 • Other: 17

Senate vote • 3/12/2026