What is the statute of limitations for claims arising under the Maryland Franchise Registration and Disclosure Law for a Caring Transitions franchise, as stated in Section 16.6?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Section 16.6 is deleted in its entirety, and in its place is substituted the following:
- "16.6. Statute of Limitations. Franchisor and Franchisee acknowledge that, pursuant to Section 227 of the Maryland Franchise Registration and Disclosure Law, any claims arising thereunder must be brought within three years after the grant of the Franchise."
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, there is a specific statute of limitations for claims arising under the Maryland Franchise Registration and Disclosure Law. For franchisees operating in Maryland, any claims made under this law must be brought within a defined period after the franchise is granted.
Specifically, Section 16.6 of the franchise agreement is amended for Maryland franchisees. The standard language in Section 16.6 is replaced with a provision stating that any claims arising under the Maryland Franchise Registration and Disclosure Law must be initiated within three years of the franchise grant. This means a franchisee has a three-year window from the date they are granted the Caring Transitions franchise to bring any legal claims related to violations of this specific Maryland law.
This provision is important for prospective Caring Transitions franchisees in Maryland as it sets a clear deadline for legal action related to franchise registration and disclosure issues. Franchisees need to be aware of this three-year limitation to ensure they do not lose their right to pursue claims if they believe Caring Transitions has violated the Maryland Franchise Registration and Disclosure Law. It is advisable for franchisees to consult with an attorney to understand their rights and obligations under Maryland law and to ensure timely action if necessary.