News Briefs

Among the key discussion points at the meeting and in follow-up meetings were: exempting Maryland-based franchisors from jurisdiction under the Maryland Franchise Act when selling to out-of-state franchisors; restricting the Maryland Securities Commissioner's review of FDDs when evaluating registration or renewal amendment applications; allowing recovery of attorneys' fees by prevailing claimants in private civil litigation brought under the Act; and creating a Franchise Advisory Committee to advise the Maryland Securities Commissioner on franchise matters.

“The discussions with Rep. Cardin, Maryland regulators, and attorneys for franchisors and franchisees were productive,” said franchise attorney David Cahn (Whiteford Taylor & Preston), who worked on the initial legislative language discussed by the committee. “We found areas of agreement, and there were benefits for franchisors and benefits for franchisees. But to date there has not been enough agreement for an endorsement.” Discussions are continuing around a bill of more limited scope that might gain enough support from the committee, he added.

One concrete benefit from the effort is that Dale Cantone, deputy commissioner in the Maryland Attorney General's Office, and Maryland Securities Commissioner Melanie Lubin have agreed to lead an ad hoc committee to discuss franchise registration and renewal issues. The first meeting date will be Dec. 16.

Maine Franchisees Launch Association

The Maine Franchise Owners Association (MFOA) was started this fall to support the more than 3,500 franchise owners and suppliers in the state. Jim Coen, who is executive director of the Coalition of Franchisee Owners, has been named executive director of MFOA. The largest franchisors in Maine include Dunkin Donuts (140 outlets), KFC/Taco Bell/Pizza Hut (125), Subway (107), McDonalds (62), Bimbo Foods (47), Southern Tsunami (37), Burger King (37), Chester's (34), and H&R Block (34). For more, visit www.mainefranchiseowners.org.

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Maryland Franchise Attorneys Discuss Possible Law Changes

Franchise attorneys in Maryland have been evaluating revisions to the Maryland Franchise Registration and Disclosure Law, 02.02.08.00, et seq., during the fall of 2013. While the proposed changes have yet to yield a recommended bill, the effort has already resulted in a mechanism to streamline the state's franchise registration and renewal process.

In early October, a member of the Maryland House of Representatives, Rep. John S. Cardin, met with franchise lawyers to discuss details of a bill he was interested in putting before the legislature. He indicated that he would propose it if it received an endorsement from the Maryland State Bar Association. And so the group's Franchise and Distribution Law Committee went to work to see if it could agree on language that it could support and send to the Business Law Section.

Among the key discussion points at the meeting and in follow-up meetings were: exempting Maryland-based franchisors from jurisdiction under the Maryland Franchise Act when selling to out-of-state franchisors; restricting the Maryland Securities Commissioner's review of FDDs when evaluating registration or renewal amendment applications; allowing recovery of attorneys' fees by prevailing claimants in private civil litigation brought under the Act; and creating a Franchise Advisory Committee to advise the Maryland Securities Commissioner on franchise matters.

“The discussions with Rep. Cardin, Maryland regulators, and attorneys for franchisors and franchisees were productive,” said franchise attorney David Cahn (Whiteford Taylor & Preston), who worked on the initial legislative language discussed by the committee. “We found areas of agreement, and there were benefits for franchisors and benefits for franchisees. But to date there has not been enough agreement for an endorsement.” Discussions are continuing around a bill of more limited scope that might gain enough support from the committee, he added.

One concrete benefit from the effort is that Dale Cantone, deputy commissioner in the Maryland Attorney General's Office, and Maryland Securities Commissioner Melanie Lubin have agreed to lead an ad hoc committee to discuss franchise registration and renewal issues. The first meeting date will be Dec. 16.

Maine Franchisees Launch Association

The Maine Franchise Owners Association (MFOA) was started this fall to support the more than 3,500 franchise owners and suppliers in the state. Jim Coen, who is executive director of the Coalition of Franchisee Owners, has been named executive director of MFOA. The largest franchisors in Maine include Dunkin Donuts (140 outlets), KFC/Taco Bell/Pizza Hut (125), Subway (107), McDonalds (62), Bimbo Foods (47), Southern Tsunami (37), Burger King (37), Chester's (34), and H&R Block (34). For more, visit www.mainefranchiseowners.org.

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