How long after Alloy grants a franchise do claims arising under the Maryland Franchise Registration and Disclosure law need to be brought?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
Item 17
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- Any claims arising under the Maryland Franchise Registration and Disclosure law must be brought within 3 years after we grant you a ALLOY franchise.
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- Our termination of the Franchise Agreement because of your bankruptcy may not be enforceable under applicable federal law (11 U.S.C.A. 101 et seq.)
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- Franchisee may sue Franchisor in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
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- The general release required as a condition of renewal, sale and/or assignment/transfer will not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, if you are granted an Alloy franchise in Maryland, you must bring any claims arising under the Maryland Franchise Registration and Disclosure law within 3 years after Alloy grants you the franchise. This requirement is designed to ensure that legal claims are addressed in a timely manner, preventing issues from lingering indefinitely.
This provision is included in the Maryland Addendum to the Franchise Disclosure Document, indicating that it specifically applies to franchisees operating in Maryland. It is important for prospective franchisees to be aware of this time limitation, as failing to bring a claim within the specified period could result in the claim being barred.
This clause does not prevent a franchisee from suing Alloy in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. Additionally, any general release required as a condition of renewal, sale, or assignment/transfer will not apply to any liability under the Maryland Franchise Registration and Disclosure Law.