For Body20 franchises in Maryland, does the Rider modify the Franchise Agreement's governing law provision regarding claims under the Maryland Franchise Registration and Disclosure Law?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- GOVERNING LAW. The following sentence is added to the end of Section 16.1 ("Governing Law") of the Franchise Agreement:
Despite anything to the contrary stated above, and to the extent required by applicable law, Maryland law will apply to claims arising under the Maryland Franchise Registration and Disclosure Law.
- CONSENT TO JURISDICTION. The following is added to the end of Section 16.3(d) ("Excepted Disputes") of the Franchise Agreement:
However, subject to your arbitration obligations, nothing in this Section affects your right under the Maryland Franchise Registration and Disclosure Law to bring a lawsuit in Maryland for claims arising under that law.
- LIMITATION OF CLAIMS. The following sentence is added to the end of Section 16.8 ("Limitation of Claims") of the Franchise Agreement:
Any limitation of claims will not act to reduce the three-year statute of limitations afforded you for bringing a claim under the Maryland Franchise Registration and Disclosure Law.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, a specific rider modifies the Franchise Agreement's governing law for Maryland franchisees concerning claims under the Maryland Franchise Registration and Disclosure Law. This modification ensures that, to the extent required by applicable law, Maryland law will govern claims arising under the Maryland Franchise Registration and Disclosure Law, despite any general governing law provisions in the Franchise Agreement that might state otherwise. This is detailed in the Rider to the Franchise Agreement for use in Maryland.
Specifically, the rider adds a sentence to Section 16.1 of the Franchise Agreement, which addresses governing law. This addition stipulates that Maryland law will apply to claims arising under the Maryland Franchise Registration and Disclosure Law, overriding any conflicting provisions in the main agreement. Furthermore, the rider clarifies the franchisee's right to bring a lawsuit in Maryland for claims arising under that law, subject to arbitration obligations, by adding to Section 16.3(d) of the Franchise Agreement.
Additionally, the rider addresses the limitation of claims, ensuring that any general limitations do not reduce the three-year statute of limitations afforded to the franchisee for bringing a claim under the Maryland Franchise Registration and Disclosure Law. This is achieved by adding a sentence to the end of Section 16.8 of the Franchise Agreement. These modifications collectively provide additional protection and clarity for Body20 franchisees in Maryland regarding their rights under state franchise law.
In practical terms, this means that if a Body20 franchisee in Maryland has a legal claim related to franchise registration and disclosure, Maryland law will be applied, and they can pursue a lawsuit in Maryland within the statutory time frame. This is a beneficial provision for franchisees as it ensures that their rights under Maryland law are protected and enforceable within their own state, regardless of any conflicting terms in the standard Franchise Agreement.