Are there any exceptions to the legal proceedings that a Body20 franchisee needs to notify the franchisor about?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
The general release required as a condition of renewal, sale and/or assignment/transfer will not apply to any liability arising under the Maryland Franchise Registration and Disclosure Law.
- 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)
Based on the 2025 Body20 Franchise Disclosure Document, franchisees operating in specific states have certain protections and rights regarding legal claims. In Maryland, the general release required for renewal, sale, assignment, or transfer of the franchise does not apply to liabilities arising under the Maryland Franchise Registration and Disclosure Law. This means a franchisee isn't waiving rights to claims under that specific law when engaging in those transactions.
Additionally, despite the standard governing law specified in the franchise agreement, Maryland law will apply to claims arising under the Maryland Franchise Registration and Disclosure Law to the extent required by applicable law. This ensures that franchisees in Maryland can rely on their state's franchise laws for relevant claims.
The FDD also states that any limitation of claims will not reduce the three-year statute of limitations afforded to franchisees for bringing a claim under the Maryland Franchise Registration and Disclosure Law. This provision ensures that Body20 franchisees in Maryland have the full statutory period to bring claims under their state's franchise laws, regardless of any other limitations in the franchise agreement.