Regarding the Confidentiality Agreement for a Budget franchise, under what legal circumstance is a franchisee permitted to bring suit in Maryland?

According to Budget's 2025 Franchise Disclosure Document, a franchisee may bring suit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, despite the Confidentiality Agreement typically dictating a different choice of forum. This exception is specifically carved out to protect the franchisee's rights under Maryland law.

This provision ensures that Budget franchisees in Maryland are not forced to litigate claims related to franchise registration and disclosure outside of their home state. The Maryland Franchise Registration and Disclosure Law is designed to protect franchisees within the state, and this clause reinforces that protection by allowing franchisees to pursue legal action in a Maryland court for violations of that law.

This is a significant benefit for prospective Budget franchisees in Maryland, as it provides a local forum for resolving disputes related to franchise registration and disclosure. It ensures that franchisees are not disadvantaged by having to travel to another state or navigate an unfamiliar legal system to assert their rights under Maryland law. Franchisees should consult with a legal professional to fully understand their rights and obligations under the Maryland Franchise Registration and Disclosure Law.