What is the statute of limitations for claims arising under the Maryland Franchise Registration and Disclosure Law after the grant of a Bft franchise?

According to Bft's 2025 Franchise Disclosure Document, any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise. This limitation on actions is specifically mentioned in Item 17 of the FDD, which addresses renewal, termination, transfer, and dispute resolution. This clause is added to the end of sections concerning waiver of jury trial, waiver of class actions, and limitation of actions in the Franchise Agreement.

For a prospective Bft franchisee in Maryland, this means that if they believe Bft has violated the Maryland Franchise Registration and Disclosure Law, they have a limited time to take legal action. Specifically, they must initiate any claims within three years from the date the franchise was granted. Failing to do so within this timeframe could result in the claim being time-barred, meaning the franchisee would lose their right to sue.

This type of limitation is fairly common in franchise agreements, as it provides both the franchisee and franchisor with a defined period for resolving disputes. It is important for franchisees to be aware of this limitation and to seek legal advice promptly if they believe they have a claim under the Maryland Franchise Registration and Disclosure Law. This ensures they do not miss the deadline for taking legal action.

It is also worth noting that Maryland franchise regulations address unfair or deceptive practices, particularly concerning waivers of rights to file lawsuits under the Maryland Franchise Registration and Disclosure Law. While the franchise agreement may include arbitration clauses, there may be disputes regarding the enforceability of forum selection requirements in light of the Federal Arbitration Act. Therefore, understanding the statute of limitations is crucial for protecting a franchisee's rights within the legal framework of Maryland.