If the offer to sell a Bft franchise was made in Maryland, is this Rider signed?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS RIDER (this "Rider") is made and entered into by and between | BFT FRANCHISE SPV, |
|---|---|
| LLC, a Delaware limited liability company with its principal business address at 17877 Von Karman Ave., | |
| Suite 100 Irvine, CA 92614 | ("Franchisee"). |
| ("Franchisor"), and, | |
| whose principal business address is | |
| 1. | are parties to that certain Franchise Agreement dated |
| Background. Franchisor | |
| and Franchisee | |
| , 20 (the "Franchise Agreement") that has been signed concurrently | |
| with the signing of this Rider. This Rider supersedes any inconsistent or conflicting provisions of the | |
| Franchise Agreement. Terms not otherwise defined in this Rider have the meanings as defined in the | |
| Franchise Agreement. | |
| This Rider is annexed to and forms part of the Franchise Agreement. This Rider is | |
| being signed because (a) Franchisee is a resident of the State of Maryland; or | (b) the Studio that Franchisee |
| operates | (c) the offer to |
| under its Franchise Agreement is or will be operated in the State of Maryland; or | |
| sell the franchise was | (d) the offer to buy the franchise was |
| made in the State of Maryland; or | accepted in |
| the State of Maryland. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, a rider to the franchise agreement is signed if the offer to sell the franchise was made in Maryland. This rider modifies certain sections of the franchise agreement to comply with Maryland law. Specifically, the rider addresses releases, insolvency, governing law, consent to jurisdiction, mediation, and mandatory binding arbitration.
For a prospective Bft franchisee in Maryland, this means that certain standard clauses in the franchise agreement are altered to provide additional protections under Maryland's franchise laws. For example, any release required as a condition of renewal or transfer will not apply to claims arising under the Maryland Franchise Registration and Disclosure Law. This ensures that franchisees do not waive their rights under Maryland law when renewing or transferring their franchise.
Additionally, the rider specifies that while the franchise agreement is generally governed by the specified governing law and jurisdiction, a franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, and Maryland law will apply to these claims. This provision ensures that Bft franchisees in Maryland have the right to resolve disputes related to their franchise agreement within the state's legal system, benefiting from the protections afforded by Maryland law.