Under what condition can an Auntie Annes franchisee enter into litigation with the franchisor in Maryland?

According to Auntie Anne's 2024 Franchise Disclosure Document, a franchisee in Maryland can enter into litigation with Auntie Anne's Franchisor SPV LLC under specific conditions related to claims arising from the Maryland Franchise Registration and Disclosure Law.

Specifically, the franchisee can litigate with Auntie Annes in Maryland if the claims arise under the Maryland Franchise Registration and Disclosure Law. However, this is allowed only if the nature of the litigation is not the type of dispute, controversy, claim, action, or proceeding that would be subject to arbitration under the Franchise Agreement. This means that while franchisees have the right to pursue litigation for certain legal claims, they must adhere to the arbitration clauses outlined in the Franchise Agreement for other types of disputes.

Additionally, any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise. This time limit is crucial, as it sets a deadline for franchisees to take legal action regarding issues covered by this specific law. This provision ensures that legal claims are addressed in a timely manner, preventing prolonged uncertainty for both the franchisee and Auntie Annes.