What section of the Bft Multi-Unit Agreement regarding termination of the franchise by the franchisor is modified by this Rider?

According to Bft's 2025 Franchise Disclosure Document, specifically the Rider to the Multi-Unit Agreement for use in Maryland, Section 8.A.(1)(b) of the Multi-Unit Agreement, which pertains to the termination of the franchise by Bft, is modified. The modification addresses concerns related to insolvency and bankruptcy.

Specifically, the rider adds a provision stating that the section of the agreement allowing for termination upon the developer's bankruptcy might not be enforceable under federal bankruptcy law, referencing 11 U.S.C. Sections 101 et seq. This acknowledges the potential conflict between the franchise agreement's termination clause and federal bankruptcy protections.

This modification is important for prospective Bft multi-unit developers in Maryland as it clarifies the enforceability of the termination clause in the event of bankruptcy. It suggests that federal law may override the franchise agreement in such situations, potentially offering more protection to the developer. Franchisees should consult with a legal professional to fully understand their rights and obligations under both the franchise agreement and federal bankruptcy law.