Does the Bor Restoration franchise agreement require state-specific amendments, and where can I find them?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
F, each of the undersigned hereby acknowledges having read this Addendum and understands and consents to be bound by all of its terms.
| FRANCHISOR | FRANCHISEE | ||
|---|---|---|---|
| BOR FRANCHISING, LLC | |||
| by: its: | by: its: | ||
| Individual Franchisee | |||
| Individual Franchisee | |||
| © 2024 All rights reserved BOR Franchising, LLC Gen 3-30-24 | 84 | ||
| ------------------------------------------------------------- | ---------- | ---------- | ---- |
| Initials | Initials |
STATE OF MARYLAND This Addendum to the Franchise Agreement, agreed to this day of, 20, between BOR Franchising, LLC and , amends and revises said Franchise Agreement as follows: a. The Franchise Agreement requires Franchisee to sign a general release as a condition of renewal, sale, termination, and franchise transfer. These covenants shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law. b. A franchisee may bring a lawsuit in Maryland for claims under the Maryland Franchise Registration and Disclosure Law. c. Any claim under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise. d. All representations requiring prospective franchisees to assent to a release, estoppel, or waiver of liability are not intended to nor shall they act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. e. Based upon the franchisor's financial condition, the Maryland Securities Commissioner has required a financial assurance. Therefore, all initial fees and payments owed by franchisees shall be deferred until the franchisor completes its pre-opening obligations under the franchise agreement. f. To the extent this Addendum will be deemed to be inconsistent with any terms or conditions of said Franchise Agreement or exhibits or attachments thereto, the terms of this Addendum will govern. g. No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise. h. The Acknowledgements found in Article 18 of the Franchise Agreement and the Closing Acknowledgement are deleted in Maryland.
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
Yes, according to the 2024 Franchise Disclosure Document, the Bor Restoration franchise agreement does require state-specific addenda in certain states. Specifically, the document includes addenda for Maryland and Minnesota. These addenda modify the standard franchise agreement to comply with state franchise laws.
For example, the Maryland addendum addresses issues such as releases related to renewal, sale, termination, and transfer, ensuring these do not waive rights under the Maryland Franchise Registration and Disclosure Law. It also stipulates a three-year statute of limitations for claims under this law and requires that initial fees be deferred until Bor Restoration completes its pre-opening obligations due to the franchisor's financial condition. Furthermore, acknowledgements in Article 18 of the Franchise Agreement and the Closing Acknowledgement are deleted in Maryland.
Similarly, the Minnesota addendum acknowledges the requirements of the Minnesota Commission of Securities and amends the franchise agreement accordingly. These state-specific addenda are typically found within Item 23 of the FDD, which includes receipts and agreements, or as separate attachments to the franchise agreement itself. A prospective franchisee should carefully review these addenda to understand how the franchise agreement is modified in their specific state and to ensure compliance with local laws.
It is important for potential Bor Restoration franchisees to consult with a legal professional to fully understand the implications of these state-specific amendments and how they affect their rights and obligations under the franchise agreement. This ensures that franchisees are aware of any specific requirements or protections afforded to them by their state's franchise laws.