Under what condition will Maryland law apply to claims related to a 7 Brew franchise?

According to 7 Brew's 2025 Franchise Disclosure Document, Maryland law will apply to claims arising under the Maryland Franchise Registration and Disclosure Law, but only to the extent required by applicable law. This means that while the franchise agreement might generally be governed by another state's laws (likely Arkansas, given 7 Brew's principal business address), any claims specifically related to franchise registration and disclosure within Maryland will be subject to Maryland law. This ensures that 7 Brew franchisees in Maryland have the protections afforded to them under Maryland's franchise laws.

This provision is further reinforced by stipulations regarding releases and choice of forum. Any release required as a condition of renewal, sale, or transfer will not apply to liabilities under the Maryland Franchise Registration and Disclosure Law. Additionally, franchisees can bring actions in Maryland for claims arising under this law, subject to arbitration obligations. These clauses collectively ensure that Maryland franchisees have recourse within their own state for specific legal issues related to their franchise agreement.

Furthermore, any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise. This statute of limitations provides a defined period for franchisees to take legal action, ensuring timely resolution of disputes. This is a critical point for prospective franchisees to note, as failure to bring a claim within this timeframe could result in the claim being time-barred. These stipulations are included in a rider to the standard franchise agreement, indicating that they are specific to franchisees in certain states like Maryland.