What does the Maryland franchise regulation state regarding a franchisee's right to file a lawsuit claiming a violation of the Maryland Franchise Law for Byrider?

According to Byrider's 2025 Franchise Disclosure Document, Maryland franchise regulations address a franchisee's right to file a lawsuit for violations of Maryland Franchise Law. Specifically, it is considered an unfair or deceptive practice for Byrider to require a franchisee to waive their right to file a lawsuit in Maryland, claiming a violation of the Maryland Franchise Law. However, the FDD also notes that the enforceability of this regulation may be disputed due to the Federal Arbitration Act.

This means that while Byrider's franchise agreement cannot force a franchisee to waive their right to sue under Maryland franchise law, there may be legal challenges to the franchisee's ability to choose a specific forum (i.e., a Maryland court) for resolving such disputes. The FDD also states that any release required as a condition of renewal, sale, or transfer will not apply to claims or liability arising under the Maryland Franchise Registration and Disclosure Law.

Furthermore, the FDD clarifies that a Byrider franchisee can bring an action in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. However, any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after Byrider grants the franchise. This provision ensures that franchisees have a legal avenue to pursue claims related to franchise law violations within a defined timeframe, while also setting a limit on how long they can wait before taking legal action.