Maryland has adopted its Franchise Registration and Disclosure Law, effective October 1, 2026. Two changes are especially important for franchisees and franchisee associations: a revised statute of limitations for private civil actions and a newly codified right to join and participate in franchisee trade associations.
Updated Statute of Limitations for Franchisee Claims
The deadline for filing a lawsuit under the Maryland Franchise Law has changed. Instead of a single three‑year window, franchisees now have two possible timelines, and the earlier one controls:
- A franchisee must bring a claim within four years of signing the franchise agreement, or within two years of opening the business to the public, whichever comes first.
New Right to Join Franchisee Trade Associations
Maryland has added a new provision expressly protecting franchisee association rights. Franchisees now have the statutory right to:
- Join a trade association of fellow franchisees of the same brand
- Participate in that association for any lawful purpose
- Associate freely with other franchisees without franchisor interference
The law prohibits franchisors from restricting or inhibiting these rights directly or indirectly, and it creates a private cause of action for violations. This amendment strengthens collective franchisee advocacy and supports the formation and operation of independent franchisee associations.
How We Can Help
Dady & Gardner, P.A. represents franchisees and franchisee associations nationwide. Our franchise attorneys regularly assist with forming, organizing, and advising franchisee associations and can help evaluate how Maryland’s amendments may affect your rights as a franchisee. For a free consultation, call us at 888‑261‑3777.
NOTICE: This blog is intended solely for informational purposes and should not be construed as providing legal advice. Please feel free to contact us with any questions you may have regarding this blog post. Readers should consult legal counsel to determine how the laws or information discussed apply to their specific circumstances.