(a) Registration required.- Except as otherwise provided in this subtitle, a person must register the offer of a franchise with the Commissioner before the person offers to sell, through advertisement or otherwise, or sells the franchise in the State.
(b) Exemptions.- The registration requirement of this section does not apply to:
(1) a transaction by an executor, administrator, sheriff, receiver, trustee in bankruptcy, guardian, or conservator;
(2) an offer to sell or sale of a franchise that is substantially similar to a franchise already owned by the offeree or buyer; and
(3) any other transaction that the Commissioner exempts by regulation because:
(i) the transaction is not within the purpose of this subtitle; and
(ii) the registration of the transaction is not necessary or appropriate in the public interest or for the protection of investors.
(c) Sale for franchisee's or subfranchisor's own account.-
(1) The registration requirement of this section does not apply to the offer to sell or sale of a franchise by a franchisee for the franchisee's own account, or the offer to sell or sale of the entire area franchise owned by a subfranchisor for the subfranchisor's own account.
(2) A sale is not effected by or through a franchisor merely because a franchisor has a right to approve or disapprove a different franchisee.
(d) Claims of exemption.-
(1) The Commissioner may require by regulation that a franchisor or subfranchisor who claims under subsection (b)(3) of this section to be exempt from the registration requirements of this section:
(i) file with the Commissioner a notice of claim of exemption in the form that the Commissioner requires; and
(ii) pay a fee of $250.
(2) The franchisor or subfranchisor shall sign and verify the notice of claim of exemption.
(a) Registration required.- Except as otherwise provided in this subtitle, a person must register the offer of a franchise with the Commissioner before the person offers to sell, through advertisement or otherwise, or sells the franchise in the State.
(b) Exemptions.- The registration requirement of this section does not apply to:
(1) a transaction by an executor, administrator, sheriff, receiver, trustee in bankruptcy, guardian, or conservator;
(2) an offer to sell or sale of a franchise that is substantially similar to a franchise already owned by the offeree or buyer; and
(3) any other transaction that the Commissioner exempts by regulation because:
(i) the transaction is not within the purpose of this subtitle; and
(ii) the registration of the transaction is not necessary or appropriate in the public interest or for the protection of investors.
(c) Sale for franchisee's or subfranchisor's own account.-
(1) The registration requirement of this section does not apply to the offer to sell or sale of a franchise by a franchisee for the franchisee's own account, or the offer to sell or sale of the entire area franchise owned by a subfranchisor for the subfranchisor's own account.
(2) A sale is not effected by or through a franchisor merely because a franchisor has a right to approve or disapprove a different franchisee.
(d) Claims of exemption.-
(1) The Commissioner may require by regulation that a franchisor or subfranchisor who claims under subsection (b)(3) of this section to be exempt from the registration requirements of this section:
(i) file with the Commissioner a notice of claim of exemption in the form that the Commissioner requires; and
(ii) pay a fee of $250.
(2) The franchisor or subfranchisor shall sign and verify the notice of claim of exemption.
(a) Registration required.- Except as otherwise provided in this subtitle, a person must register the offer of a franchise with the Commissioner before the person offers to sell, through advertisement or otherwise, or sells the franchise in the State.
(b) Exemptions.- The registration requirement of this section does not apply to:
(1) a transaction by an executor, administrator, sheriff, receiver, trustee in bankruptcy, guardian, or conservator;
(2) an offer to sell or sale of a franchise that is substantially similar to a franchise already owned by the offeree or buyer; and
(3) any other transaction that the Commissioner exempts by regulation because:
(i) the transaction is not within the purpose of this subtitle; and
(ii) the registration of the transaction is not necessary or appropriate in the public interest or for the protection of investors.
(c) Sale for franchisee's or subfranchisor's own account.-
(1) The registration requirement of this section does not apply to the offer to sell or sale of a franchise by a franchisee for the franchisee's own account, or the offer to sell or sale of the entire area franchise owned by a subfranchisor for the subfranchisor's own account.
(2) A sale is not effected by or through a franchisor merely because a franchisor has a right to approve or disapprove a different franchisee.
(d) Claims of exemption.-
(1) The Commissioner may require by regulation that a franchisor or subfranchisor who claims under subsection (b)(3) of this section to be exempt from the registration requirements of this section:
(i) file with the Commissioner a notice of claim of exemption in the form that the Commissioner requires; and
(ii) pay a fee of $250.
(2) The franchisor or subfranchisor shall sign and verify the notice of claim of exemption.
