For Big Apple Bagels in Maryland, what specific document is the addendum modifying?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT R BAB SYSTEMS, INC. ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT FOR THE STATE OF MARYLAND
The BAB Systems, Inc. Franchise Disclosure Document ("FDD") for use in the State of Maryland is modified in accordance with the following:
- Item 17 of the Franchise Disclosure Document on "Renewal, Termination, Transfer and Dispute Resolution" is amended by the addition of the following:
The general release required as a condition of renewal and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
Franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise.
The provision in the BAGELS Franchise Agreement which provides for termination upon bankruptcy of the franchisee may not be enforceable under federal bankruptcy law (11. U.S.C. Section 101 et. seq.).
EXHIBIT R BAB SYSTEMS, INC. ADDENDUM TO THE BAGELS FRANCHISE AGREEMENT FOR THE STATE OF MARYLAND
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, there are two addenda for the state of Maryland. One addendum modifies the Franchise Disclosure Document (FDD) itself. The other addendum modifies the Bagels Franchise Agreement.
The addendum to the FDD includes modifications to Item 17, specifically addressing renewal, termination, transfer, and dispute resolution in accordance with Maryland's franchise laws. It clarifies that the general release required for renewal or transfer does not apply to liabilities under Maryland's franchise regulations. It also specifies that franchisees can bring lawsuits in Maryland for claims arising under these regulations, with a three-year statute of limitations from the franchise grant date. Additionally, it notes that the termination clause related to franchisee bankruptcy may not be enforceable under federal bankruptcy law.
The addendum to the Bagels Franchise Agreement includes modifications to Paragraph 2.b. on Renewal, Paragraph 14.b. on Transfer by Franchisee, Paragraph 10.a. on Marketing and Promotion by Franchisor, Section 16 on Termination by Franchisor for Cause, Paragraph 18.e. on Governing Law/Consent to Jurisdiction, and Paragraph 18.g. on Limitation of Claims.