Does the Maryland addendum supersede any other term of any document executed in connection with the Better Blend franchise?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
MARYLAND ADDENDUM TO DISCLOSURE DOCUMENT
In the State of Maryland only, this Disclosure Document is amended as follows:
The following is added to Item 17:
The general release required as a condition of renewal, sale, and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise.
You have the right to file a lawsuit alleging a cause of action arising under the Maryland Franchise Law in any court of competent jurisdiction in the State of Maryland.
The Franchise Agreement provides for termination upon bankruptcy of the franchisee. This provision may not be enforceable under federal bankruptcy law.
Source: Item 23 — RECEIPTS (FDD pages 43–157)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the Maryland addendum modifies specific aspects of the disclosure document within the state of Maryland. The addendum does not contain language that explicitly states it supersedes any other term of any document executed in connection with the Better Blend franchise. Instead, it provides specific amendments related to liability under the Maryland Franchise Registration and Disclosure Law, the statute of limitations for claims, the right to file lawsuits in Maryland courts, and the enforceability of termination provisions related to franchisee bankruptcy.
Specifically, the Maryland addendum states that the general release required for renewal, sale, or transfer of the franchise does not apply to liability under Maryland's franchise law. It also clarifies that any claims under Maryland franchise law must be brought within three years and that franchisees have the right to file lawsuits in Maryland courts. Additionally, it notes that the franchise agreement's termination provision regarding franchisee bankruptcy may not be enforceable under federal bankruptcy law.
In contrast, the Illinois addendum explicitly states that "No statement, questionnaire or acknowledgement signed or agreed to by a franchisee 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." The Maryland addendum does not contain similar language.
Therefore, a prospective Better Blend franchisee in Maryland should be aware that while the Maryland addendum provides specific protections and clarifications regarding their rights under Maryland franchise law, it does not contain a blanket statement superseding all other terms of documents related to the franchise. Franchisees should consult with legal counsel to fully understand the implications of the franchise agreement and the addenda in their specific state.