Does the Maryland addendum modify Item 17 of the Bombs Away Disclosure Document?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
MARYLAND ADDENDUM TO DISCLOSURE DOCUMENT
In the State of Maryland only, this Disclosure Document is amended as follows:
The following is added to Item 17:
The general release required as a condition of renewal, sale, and/or assignment/transfer shall not apply to any liability 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.
You have the right to file a lawsuit alleging a cause of action arising under the Maryland Franchise Law in any court of competent jurisdiction in the State of Maryland.
The Franchise Agreement provides for termination upon bankruptcy of the franchisee. This provision may not be enforceable under federal bankruptcy law.
Source: Item 23 — RECEIPTS (FDD pages 36–117)
What This Means (2024 FDD)
According to the 2024 Bombs Away Franchise Disclosure Document, the Maryland Addendum does modify Item 17. Specifically, the addendum adds provisions related to general releases, the statute of limitations for claims, the right to file lawsuits, and the enforceability of termination clauses related to franchisee bankruptcy, but only within the state of Maryland. These modifications are designed to ensure that franchisees in Maryland are aware of their rights under Maryland's franchise laws.
For a prospective Bombs Away franchisee in Maryland, this means that certain clauses in the standard franchise agreement are altered to comply with Maryland law. The general release required for renewal, sale, or transfer does not apply to liabilities under the Maryland Franchise Registration and Disclosure Law. Any claims under this law must be brought within 3 years of the franchise grant. Franchisees also have the right to sue under Maryland franchise law in a Maryland court. Additionally, the standard termination clause related to bankruptcy may not be enforceable under federal bankruptcy law.
These modifications provide additional protections to Bombs Away franchisees in Maryland, ensuring that they are not subject to terms that conflict with state law. It is important for franchisees to understand these specific modifications, as they can affect their rights and obligations under the franchise agreement. Franchisees should consult with an attorney to fully understand the implications of these changes and how they apply to their specific situation.