What is the deadline for bringing claims under the Maryland Franchise Registration and Disclosure Law related to the Alloy Area Development Agreement?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 15.H, Venue, is amended to provide that you may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. Section 15.H is further amended to provide that any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three (3) years after the date of the Area Development Agreement.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the date of the Area Development Agreement. This amendment specifically applies to franchises sold in Maryland to comply with Maryland statutes and regulations.
This means that if a franchisee in Maryland believes Alloy has violated the Maryland Franchise Registration and Disclosure Law in relation to their Area Development Agreement, they have a three-year window from the date of the agreement to file a lawsuit. This timeframe is crucial, as missing the deadline would mean forfeiting the right to pursue legal action for those claims.
This provision is more favorable to the franchisee than the general provision found in Section 15 of the Alloy Franchise Agreement. Section 15 limits claims to the shorter of the applicable statute of limitations or one year from when the facts giving rise to the claim were discovered. The Maryland addendum specifically overrides this provision, providing a longer and clearer timeframe for franchisees in Maryland to bring claims under Maryland franchise law.