Is the acknowledgement form for Bb.Q Chicken franchisees applicable in Maryland?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE ACKNOWLEDGEMENT STATEMENT
NOT FOR USE IN CALIFORNIA, MARYLAND, AND WASHINGTON
'Do not sign if the franchisee is a Maryland resident or if the franchised business will be located within the State of Maryland.
Acknowledgement of the truthfulness of the statements below are an inducement for the Franchisor to enter into a Franchise Agreement (or Multi-Unit Development Agreement). Notify Franchisor immediately, prior to acknowledgment, if any statement below is incomplete or incorrect.
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee (or developer) in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, the Franchisee Acknowledgement Statement is not for use in Maryland. The document explicitly states that the acknowledgement form should not be signed if the franchisee is a Maryland resident or if the franchised business will be located within the State of Maryland. This indicates that Bb.Q Chicken franchisees in Maryland are not required to sign this particular acknowledgement form.
This exclusion suggests that Maryland franchise law may offer specific protections or require different disclosures that are not covered by the standard acknowledgement form. It is common for franchise agreements and related documents to vary by state due to differing franchise laws and regulations. The acknowledgement form includes a statement that no acknowledgement signed by a franchisee shall waive any claims under any applicable state franchise law, including fraud in the inducement, or disclaiming reliance on any statement made by the franchisor.
For a prospective Bb.Q Chicken franchisee in Maryland, this means they should pay close attention to any state-specific addenda or modifications to the franchise agreement. They should also consult with a legal professional familiar with Maryland franchise law to ensure they fully understand their rights and obligations. The franchisor is deferring the payment of the initial franchise fee and all other initial payments until all of their material pre-opening obligations have been satisfied and until the business opens and is operating, due to the Maryland Securities Commissioner's requirements based on Bb.Q Chicken's financial condition.
It is important for potential franchisees to be aware of these state-specific differences and to seek appropriate legal counsel to navigate the complexities of franchise ownership in Maryland. This deferral of payments provides some financial protection to the franchisee, ensuring that they do not pay the franchise fee until the business is ready to open.