According to Maryland franchise regulations, what practice related to lawsuits is considered unfair or deceptive for Bft?

According to Bft's 2025 Franchise Disclosure Document, Maryland franchise regulations consider it an unfair or deceptive practice for Bft to require a franchisee to waive their right to file a lawsuit in Maryland if the lawsuit claims a violation of the Maryland Franchise Registration and Disclosure Law. This protection ensures that Bft franchisees operating in Maryland can seek legal recourse within the state for violations of Maryland franchise law without being forced to waive that right.

However, the FDD also notes that the enforceability of this regulation is subject to some dispute due to the Federal Arbitration Act. This means that while Maryland law aims to protect a franchisee's right to sue in Maryland courts, the Federal Arbitration Act could potentially override this protection, possibly requiring disputes to be resolved through arbitration instead.

Prospective Bft franchisees in Maryland should be aware of this potential conflict between state and federal law and seek legal counsel to understand their rights and obligations fully. It is important to determine whether disputes can be litigated in Maryland courts or if they will be subject to arbitration, despite the state regulation.