Maryland Just Amended its Franchise Law. Here’s What You Need to Know.

Maryland lawmakers passed the biggest update to the state’s franchise rules in more than 40 years. The Franchise Reform Act (Senate Bill 415 and House Bill 730) cleared the General Assembly by wide margins. Governor approval followed, and the new provisions take effect October 1, 2026.

This is the first significant change to the Maryland Franchise Law, since it was enacted in 1981. Franchisors, franchisees, and franchise buyers all need to know what’s different.

The Five Big Changes in the Maryland Franchise Law

1. The state gets more time to go after bad actors. The Maryland Securities Commissioner’s window to bring enforcement actions grows from three years to five years after a violation. Regulators now have more runway to catch problems and hold franchisors accountable.

2. Franchisees get more time to sue. The old rule gave franchisees three years from the date they bought the franchise to file a lawsuit over disclosure violations, period. The new rule extends that to the earlier of four years after the franchise agreement is signed, or two years after the location actually opens to the public. That second trigger matters.

That’s because plenty of problems don’t surface until a franchisee is open and operating, and the old clock could run out before those problems ever became visible.

3. Lawsuit rights are now tied to Maryland. Private lawsuits under the law now apply specifically to franchisees who live in Maryland, or whose franchised business operates (or will operate) in the state. This narrows and clarifies who can use Maryland’s law to bring a claim.

4. Franchisee associations are protected. Franchisees now have a statutory right to join and participate in trade associations made up of other franchisees from the same brand. Franchisors can’t restrict or discourage that participation, and franchisees who feel blocked now have a private right of action to do something about it.

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5. The Fast-Track FDD renewal program is now law. Maryland piloted a Fast-Track Review Program for franchise disclosure document renewals back in 2025. The new act writes that program permanently into the statute, giving franchisors a faster path through annual FDD renewals.

Note: Franchisors already registered in Maryland don’t need to file a special update just because the law changed. They can fold the required revisions into their next scheduled renewal or amendment filing. But that’s a filing accommodation, not a delay.

However, any FDD or franchise agreement offered or sold in Maryland after October 1, 2026 has to reflect the new rules.

What These Franchise Law Changes Mean if You’re Buying a Franchise in Maryland

If you’re considering a franchise that operates, or plans to operate, in Maryland, this changes your leverage.

In essence, you now have a longer runway to act if something in the disclosure documents turns out to be misleading, especially if the problem only becomes obvious after you open your doors.

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Additionally, you also have a clearer, protected right to talk to other franchisees in the same system without your franchisor trying to shut that down.

For franchisors, the compliance clock is real even if the filing deadline feels soft. Disclosure documents and franchise agreements used after October 1 need to match the amended law, not the 1981 version.

The Bottom Line Concerning the New Maryland Franchise Law

Franchise law doesn’t stay still, and Maryland just proved it.

A change like this can shift deadlines, rights, and leverage overnight, and most buyers never see it coming until it’s relevant to their own deal. That’s why you need a franchise attorney who keeps up with every new law. You can find one here.