Sec. Internet Offers  

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  • A. Any communication made through the Internet, the World Wide Web, or any other similar proprietary or common carrier electronic delivery system, of an offer to sell a franchise (Internet Offer) is exempt from the registration provisions of the Maryland Franchise Law if:

    (1) The Internet Offer indicates, directly or indirectly, that the franchise is not being offered to residents of Maryland;

    (2) The Internet Offer is not otherwise directed to any person in Maryland by or on behalf of the franchisor or anyone acting with the franchisor's knowledge; and

    (3) No franchises are sold in Maryland by or on behalf of the franchisor until the offering has been registered and declared effective and the MFOC has been delivered to the offeree before the sale and in compliance with the Maryland Franchise Law.

    B. Reliance on an exemption from registration under this regulation does not preclude a franchisor from relying on any other exemption provided under the Maryland Franchise Law or these regulations.