§ 14-214. Registration required; exemptions

   (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.

HISTORY: An. Code 1957, art. 56, § 347, 348, 350; 1992, ch. 4, § 2; ch. 26, § 4.