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What are Maryland's FDD Registration and Renewal Fees? The initial FDD registration fee is $500 and the annual FDD renewal fee is $250.
The seasoned/large franchisor exemption applies when a franchisor meets minimum net worth and experience requirements. The substantial investment exemption requires a minimum investment of $1,000,000 (or $750,000 in Maryland).
Maryland General Franchise Laws Reg. Law §14-201 defines many of the terms involved, laying the groundwork for all the state franchise laws. A franchise is a sales agreement to give the right to sell or distribute goods and services via a proprietary system and brand in exchange for a franchise fee of some manner.
Maryland is one of about 15 states in the United States that requires ?registration? of franchise offerings. Before you offer or sell any franchise in Maryland or to any Maryland residents, you must first register your franchise offering with the Securities Division, Office of the Attorney General.
Franchise registration states include California, Maryland, Michigan, Minnesota, New York, and North Dakota. Franchise filing states include Connecticut, Florida, Kentucky, South Carolina, and South Dakota.
Maryland is a franchise registration state and under the Maryland Franchise Registration and Disclosure Law franchisors must file and register their FDD before offering or selling a franchise in the state.
So, you must register your FDD with the Securities Division of the Maryland Attorney General's Office prior to offering or selling franchises in Maryland. Maryland charges a $500 fee for the initial registration application and a $250 fee for renewal applications, which must be done annually.