Get Maryland Division Of Securities

Franchise startup costs can be as low as $10,000 or as high as $5 million, with the majority falling somewhere between $100,000 and $300,000. The price all depends on the industry, location and type of franchise.

Maryland charges a $500 fee for the initial registration application and a $250 fee for renewal applications, which must be done annually. Maryland requires franchisors to submit their renewal materials at least 15 days before the anniversary of their registration date.

Registration of Franchises Any person or company that intends to offer or sell franchises (a "franchisor") within Maryland or to Maryland residents must register its franchise offering with the Securities Division.

Maryland's Business Opportunity Act requires that sellers must file a disclosure statement with the Securities Division before advertising or soliciting in Maryland. The seller also must provide a copy of the disclosure statement to the buyer at least 10 business days before an agreement is executed.

Franchise marketing fees are usually based on your monthly revenue. For instance, if your average monthly revenue is $25, 000, and the franchisor charges a 2% marketing fee, you'll have to pay your franchisor $500. (That's $6, 000 annually.)

MARYLAND FRANCHISE LAWS The initial franchise registration filing fee is $500. Each annual renewal filing fee is $250. The Maryland state franchise regulator's web site is here.

The Securities Division provides information regarding the registration status and disciplinary history of broker-dealers, agents, investment advisers and investment adviser representatives.