Legislative policy

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    (a)    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)    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.


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