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What is the subject of Article 11 in the Angry Chickz Area Development Agreement?

Angry_Chickz Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. Consent to Jurisdiction. Sections 11.2, and 12.8 of the Area Development Agreement are amended to provide that, under the Maryland Franchise Law, any litigation involving claims arising under the Maryland Franchise Law that are not subject to arbitration may be brought in Federal District Court in Maryland.

Source: Item 23 — RECEIPTS (FDD pages 54–260)

What This Means (2025 FDD)

Based on the 2025 Angry Chickz Franchise Disclosure Document, Article 11 of the Area Development Agreement is referenced within the context of amendments related to Maryland law. Specifically, Section 11.2 of the Area Development Agreement is amended to address consent to jurisdiction. According to the addendum, any litigation involving claims arising under the Maryland Franchise Law that are not subject to arbitration may be brought in Federal District Court in Maryland. This amendment ensures that franchisees have the right to pursue legal claims related to Maryland franchise law within the state's federal court system.

This provision is important for prospective Angry Chickz franchisees in Maryland as it clarifies where legal disputes can be resolved. It ensures that franchisees are not forced to litigate claims related to Maryland franchise law in a jurisdiction outside of Maryland, which could be more costly and inconvenient. The amendment specifically applies to claims that are not subject to arbitration, meaning that if the franchise agreement requires arbitration, this provision would not apply.

It is common for franchise agreements to include clauses about jurisdiction and venue, specifying where legal disputes must be resolved. However, state laws like the Maryland Franchise Law can override these clauses to protect franchisees. This addendum reflects the franchisor's compliance with Maryland law, providing an added layer of protection for franchisees operating in that state. Prospective franchisees should carefully review these types of provisions and any state-specific addenda to understand their legal rights and obligations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.