Maryland Franchise Law Changes Take Effect October 1

Amendments to the Maryland Franchise Registration and Disclosure Law took effect Oct. 1, 2026, and they apply to every franchisor selling into the state. Enacted on May 12, the changes widen franchisees' legal options and the state's enforcement reach at the same time. Any disclosure document or franchise agreement used for a Maryland sale from this week forward must comply.

Longer windows for claims and enforcement

Franchisees can now bring claims until the earlier of four years after the franchise is granted or two years after the unit opens to the public, replacing a flat three-year limit. The Maryland Securities Commissioner's window to pursue violations grows from three years to five. Together, those changes extend the legal tail on every franchise sale.

Association rights get teeth

The law bars franchisors from directly or indirectly restricting franchisees from joining a same-brand franchisee association for lawful purposes, and it gives franchisees a private right of action to enforce that protection. Franchisors with agreement clauses or field practices that discourage collective organizing should review them now. Systems already facing organized franchisee groups will feel this most.

What franchisors need to do now

Guidance issued by the Commissioner on Sept. 2 lets registered franchisors fold the changes into their next renewal or amendment filing instead of making a special filing. That grace period does not delay compliance, and regulators expect a specific limitations-period disclosure, verbatim, in the FDD or Maryland addendum starting Oct. 1. The law also limits its reach to Maryland-resident franchisees or units located in the state, and codifies a fast-track review process for renewal filings.