What sections of the Bft Franchise Agreement does Section 4 of this Rider add to?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Governing Law; Consent to Jurisdiction. The following is added to the end of Sections 16.1 (Governing Law) and 16.6 (Consent to Jurisdiction) of the Franchise Agreement: ; provided, however, Franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. | Maryland law will apply to claims arising under the Maryland Franchise Registration and Disclosure Law.
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, Section 4 of the Rider modifies specific sections of the Franchise Agreement related to legal jurisdiction and governing law. Specifically, it adds provisions to Section 16.1, which deals with Governing Law, and Section 16.6, which covers Consent to Jurisdiction. This modification is relevant for franchisees operating in Maryland.
The added provision allows a Bft franchisee to bring a lawsuit in Maryland if the claims arise under the Maryland Franchise Registration and Disclosure Law, regardless of the general governing law specified in the franchise agreement. Furthermore, Maryland law will be applicable to claims arising under the Maryland Franchise Registration and Disclosure Law.
This modification provides an added layer of protection for Bft franchisees in Maryland, ensuring they have the option to pursue legal claims related to franchise registration and disclosure within their own state, under Maryland law. This could potentially reduce the costs and complexities associated with resolving disputes, as franchisees would not necessarily need to travel to another jurisdiction or be subject to a different state's laws for these specific types of claims.