Under what specific circumstance can a Bath Tune Up franchisee bring a lawsuit in Maryland?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 11.2 (Disputes Not Subject To Alternate Dispute Resolution) of the Agreement is amended to read as follows:
Except for claims subject to arbitration, a franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
According to the 2025 Bath Tune Up Franchise Disclosure Document, a franchisee located in Maryland may bring a lawsuit against Bath Tune Up for claims arising under the Maryland Franchise Registration and Disclosure Law. This is specifically mentioned as an amendment to Section 11.2 of the franchise agreement, which typically deals with disputes and alternate dispute resolution.
This provision ensures that Bath Tune Up franchisees in Maryland retain their rights under Maryland's franchise laws, despite any general clauses in the franchise agreement that might otherwise require disputes to be resolved through arbitration or other methods. This offers an additional layer of protection for franchisees operating in Maryland, allowing them to seek legal recourse in state courts for violations of the Maryland Franchise Registration and Disclosure Law.
It is important to note that this ability to bring a lawsuit is specifically limited to claims arising under the Maryland Franchise Registration and Disclosure Law. Any other types of disputes, such as those related to contract interpretation or other business matters, may still be subject to the standard dispute resolution procedures outlined in the franchise agreement, including arbitration.