Under the Maryland Franchise Registration and Disclosure law, how long do Alloy franchisees have to bring claims after the franchise is granted?
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, franchisees in Maryland have a specific timeframe to bring claims under the Maryland Franchise Registration and Disclosure Law. Any such claims must be initiated within three years after Alloy grants the franchise. This stipulation is part of an addendum to the franchise agreement that specifically addresses compliance with Maryland statutes and regulations.
This provision clarifies the statute of limitations for claims arising from the Maryland Franchise Registration and Disclosure Law, ensuring that franchisees are aware of the deadline for pursuing legal action. It is important for prospective Alloy franchisees in Maryland to understand this limitation, as failing to bring a claim within the three-year period could result in the claim being time-barred.
This requirement is included in Item 17 of the Maryland Addendum, which covers various aspects of the franchise agreement related to Maryland law. The addendum also specifies that franchisees may sue Alloy in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, and that general releases required for renewal, sale, or transfer of the franchise will not apply to liabilities under the same law. These provisions collectively aim to protect the rights of franchisees under Maryland law.