Can a franchisee bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law against Alloy?

According to Alloy's 2025 Franchise Disclosure Document, a franchisee can bring a lawsuit against Alloy in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. Specifically, Section 15.I of the Franchise Agreement is amended to allow franchisees to bring such lawsuits in Maryland. This amendment ensures that franchisees are not restricted from seeking legal recourse within their own state for violations of Maryland's franchise laws.

However, any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the date of the Franchise Agreement. This time limit means a franchisee needs to be aware of the statute of limitations and act promptly if they believe Alloy has violated the Maryland Franchise Registration and Disclosure Law.

Furthermore, the addendum clarifies that certain provisions within the Franchise Agreement do not act as a waiver of liability under the Maryland Franchise Registration and Disclosure Law. This includes disclaimers or acknowledgments that might suggest a franchisee is releasing Alloy from responsibility for actions that violate Maryland franchise law. Similarly, general releases required for renewal, sale, or transfer of the franchise do not apply to liabilities under the Maryland Franchise Registration and Disclosure Law. This protects the franchisee's right to pursue claims even if they have signed a general release for other matters.