If the Body20 franchise is to be operated in Maryland, is the acknowledgement still required?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
THIS QUESTIONNAIRE SHALL NOT BE COMPLETED BY YOU, AND WILL NOT APPLY, IF THE OFFER OR SALE OF THE FRANCHISE IS SUBJECT TO THE STATE FRANCHISE DISCLOSURE LAWS IN THE STATES OF CALIFORNIA, HAWAII, ILLINOIS, INDIANA, MARYLAND, MICHIGAN, MINNESOTA, NEW YORK, NORTH DAKOTA, RHODE ISLAND, SOUTH DAKOTA, VIRGINIA, WASHINGTON, OR WISCONSIN.
DO NOT SIGN THE ACKNOWLEDGEMENT IF THE FRANCHISE IS TO BE OPERATED IN, OR YOU ARE A RESIDENT OF, MARYLAND.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, if the franchise is to be operated in Maryland, the franchisee should not sign the acknowledgement. The FDD states explicitly that the questionnaire should not be completed, and will not apply, if the franchise is subject to state franchise disclosure laws in Maryland.
This means that Body20 franchisees in Maryland are protected by Maryland's franchise laws and are not required to sign an acknowledgement that could potentially waive their rights under those laws. This is a significant benefit for franchisees in these states, as it ensures that they retain their legal protections and recourse in case of disputes with the franchisor.
Furthermore, the FDD includes a Rider to the Franchise Agreement specifically for use in Maryland. This rider modifies certain sections of the standard Franchise Agreement to ensure compliance with Maryland law. For example, it clarifies that the general release required for renewal, sale, or transfer of the franchise will not apply to liabilities arising under the Maryland Franchise Registration and Disclosure Law. This ensures that Body20 franchisees in Maryland retain their rights and protections under state law, even when signing standard franchise documents.