Md. Code Regs. 02.02.08.04

Current through Register Vol. 51, No. 24, December 2, 2024

Section 02.02.08.04 - Application for Registration

A. Form of Application. An application to register a franchise shall be prepared in accordance with the Uniform Franchise Offering Circular Guidelines adopted by the North American Securities Administrators Association, Inc., on April 25, 1993 (UFOC), which is incorporated by reference, with the modifications set forth in §B of this regulation. A copy of the UFOC may be obtained from the Division for a nominal fee and may also be found in Business Franchise Guide (CCH) § 5200 -----5200.17.

B. Modifications to UFOC.

(1) An application shall include two copies of the proposed offering circular which complies with the instructions for the UFOC with the additions and modifications set forth in §B(2)-----(4) of this regulation.

(2) Item 11-----Franchisor Obligations. In addition to the information required by the UFOC, the offering circular shall disclose in Item 11 how fees related to advertising are to be raised and spent, and how a franchisee may obtain an accounting of advertising expenditures.

(3) Item 17-----Renewal, Termination, Transfer, and Dispute Resolution. If the agreement provides for termination of the franchise upon bankruptcy of the franchisee, the offering circular shall disclose in Item 17, in addition to the information required by the UFOC, that this provision may not be enforceable under federal bankruptcy law.

(4) Item 21-----Financial Statements. In addition to the information required by the UFOC, the offering circular shall contain financial statements required under Regulation .13 of this chapter.

Md. Code Regs. 02.02.08.04

Regulations .04 adopted as an emergency provision effective December 2, 1977 (4:26 Md. R. 2005); emergency status extended at 5:8 Md. R. 587
Regulations .04 adopted effective May 5, 1978 (5:9 Md. R. 683) (Recodified from COMAR 02.02.04 to 02.02.10)
Regulations .04 recodified and amended effective May 19, 1986 (13:10 Md. R. 1154)
Regulation .04 amended effective October 29, 1990 (17:21 Md. R. 2525)
Regulations ______ .04 under COMAR 02.02.10 repealed effective January 17, 1994 (21:1 Md. R. 27)
Regulations .04 adopted effective January 17, 1994 (21:1 Md. R. 27)
Regulation .04A amended and C adopted effective May 23, 1994 (21:10 Md. R. 840)
Regulation .04B amended effective June 29, 1998 (25:13 Md. R. 992)