Notwithstanding the consent to jurisdiction in the 7 Brew Franchise Agreement, where can a franchisee bring an action for claims arising under the Maryland Franchise Registration and Disclosure Law?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
- CONSENT TO JURISDICTION. The following language is added at the end of Section 21.H of the Franchise Agreement:
Notwithstanding the foregoing, and subject to your arbitration obligations, you may bring an action in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, despite the standard consent to jurisdiction outlined in the franchise agreement, a franchisee has the option to bring an action in Maryland for claims specifically arising under the Maryland Franchise Registration and Disclosure Law. This provision is added to Section 21.H of the Franchise Agreement, which typically deals with consent to jurisdiction.
This means that while other legal matters might need to be addressed in a specific jurisdiction as per the standard agreement, any claims related to franchise registration and disclosure issues under Maryland law can be pursued in Maryland. This offers a level of protection and convenience for franchisees operating in Maryland, as they do not necessarily have to travel to the location of 7 Brew's principal business address to resolve disputes related to Maryland franchise law.
This stipulation is important for prospective franchisees in Maryland as it ensures that they have a local legal avenue for specific franchise-related claims. It also aligns with the broader theme of state-specific addenda and riders included in the FDD, which aim to address particular legal requirements and protections offered by individual states like Maryland.