Under Maryland Franchise Registration and Disclosure Law, what representation does the licensee make regarding the Test Agreement for Brueggers Bagels?

According to Brueggers Bagels's 2025 Franchise Disclosure Document, under the Maryland Franchise Registration and Disclosure Law, the licensee represents and warrants that the license represented by the Test Agreement is substantially similar to licenses already owned by the licensee. This means that if a potential franchisee is entering into a Test Agreement in Maryland, they are confirming that the terms and conditions of that agreement are largely the same as those in other franchise licenses they already hold.

This representation is significant because Maryland franchise law requires certain disclosures and registrations unless specific exemptions are met. One such exemption might apply if the franchisee is already experienced with similar franchise agreements. By representing that the Test Agreement is substantially similar to existing licenses, the franchisee may be affirming their eligibility for certain exemptions under Maryland law, potentially streamlining the process for Brueggers Bagels to offer the franchise in that state.

For a prospective Brueggers Bagels franchisee, this clause highlights the importance of understanding all existing franchise agreements they may have. If the Test Agreement differs significantly from their other licenses, this representation could be inaccurate, potentially leading to legal complications. It is crucial to carefully review and compare the Test Agreement with any other franchise agreements to ensure the representation is truthful and accurate.