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How does the Body20 Rider modify the limitation of claims provision in the Franchise Agreement for Maryland franchisees regarding the statute of limitations under the Maryland Franchise Registration and Disclosure Law?

Body20 Franchise · 2025 FDD

Answer from 2025 FDD Document

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, the Rider to the Franchise Agreement for use in Maryland addresses the limitation of claims. Specifically, it ensures that any general limitation of claims within the Franchise Agreement does not reduce the three-year statute of limitations provided to franchisees under the Maryland Franchise Registration and Disclosure Law. This means that even if the standard agreement has clauses that could be interpreted as shortening the time to bring a claim, Maryland franchisees retain the full three years allowed by Maryland law to file claims related to franchise registration and disclosure issues. This protection is crucial for franchisees in Maryland, as it prevents the franchise agreement from inadvertently or intentionally limiting their legal rights under state franchise law.

This modification is important because franchise agreements often contain clauses that limit the time frame in which a franchisee can bring a claim against the franchisor. Without the specific provision in the Maryland Rider, a Body20 franchisee could potentially lose their right to sue if they do not act within a shorter period specified in the general agreement. By explicitly preserving the three-year statute of limitations, the Rider ensures that Maryland franchisees have adequate time to discover and address any violations of the Maryland Franchise Registration and Disclosure Law.

In practical terms, this means a Body20 franchisee in Maryland has three years from the date they are granted the franchise to bring a claim under the Maryland Franchise Registration and Disclosure Law, regardless of any conflicting terms in the standard Franchise Agreement. This provides a significant benefit to Maryland franchisees, offering them greater legal protection and recourse compared to franchisees in states without such specific safeguards. This also aligns with the broader purpose of state franchise laws, which are designed to protect franchisees from potentially unfair or deceptive practices by franchisors.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.