§ 14-202. Legislative policy

   (a) Findings. -- The General Assembly finds that:

   (1) the widespread sale of franchises has created many investment and business problems; and

   (2) franchisees have suffered substantial losses when the franchisor or its representative has not given complete information about:

      (i) the franchisor-franchisee relationship;

      (ii) the franchise agreement; and

      (iii) the business experience of the franchisor or its representative.

(b) Intent of subtitle. -- The intent of this subtitle is to:

   (1) give each prospective franchisee necessary information about any franchise offer;

   (2) prohibit the sale of franchises if the sale would lead to fraud or a likelihood that the franchisor's representations would not be fulfilled; and

   (3) protect the franchisor-franchisee relationship.

HISTORY: An. Code 1957, art. 56, § 346; 1992, ch. 4, § 2.