House Bill 992, introduced in Maryland on March 15, 2025, aims to enhance regulatory oversight of franchise operations within the state. The bill seeks to address issues related to franchise compliance and consumer protection by establishing clearer guidelines for the registration and enforcement of franchise agreements.

Key provisions of House Bill 992 include the requirement for individuals or entities to register any franchise offers with the Commissioner of Financial Regulation before advertising or selling franchises in Maryland. This registration process is designed to ensure that potential franchisees are adequately informed and protected from potential violations. Notably, the bill outlines specific circumstances under which the registration requirement may be waived, such as transactions involving executors or sales of franchises that are substantially similar to those already owned by the buyer.

The bill also grants the Commissioner enhanced powers to enforce compliance, including the ability to impose penalties such as revocation of business charters, restitution, and the appointment of receivers. Importantly, the Commissioner is not required to post a bond when exercising these powers, which streamlines the enforcement process.

Debate surrounding House Bill 992 has centered on its implications for business operations and the potential burden it may place on franchise owners. Supporters argue that the bill is essential for protecting consumers and ensuring fair business practices, while opponents express concerns about the increased regulatory oversight and its impact on small businesses.

The economic implications of House Bill 992 could be significant, as it may alter the landscape for franchise operations in Maryland. By enhancing consumer protections, the bill could foster a more trustworthy business environment, potentially attracting more franchise investments. However, the additional regulatory requirements may also deter some entrepreneurs from entering the franchise market.

As the legislative process continues, stakeholders are closely monitoring the bill's progress and its potential effects on the franchise industry in Maryland. If passed, House Bill 992 could set a precedent for how franchises are regulated in the state, influencing future legislation and business practices.