Does the Chocolate Fish Coffee franchise agreement include state addenda to agreements?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
- 5. State Addenda.
[Maryland Residents]: This Release shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
[Washington Residents]: A release or waiver of rights executed by a franchisee shall not include rights under the Washington Franchise Investment Protection Act except when executed pursuant to a negotiated settlement after the franchise agreement is in effect and where the parties are represented by independent counsel.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to the 2024 Chocolate Fish Coffee Franchise Disclosure Document, Exhibit C includes state addenda that apply specifically to residents of Maryland and Washington. For Maryland residents, the release does not apply to any liability under the Maryland Franchise Registration and Disclosure Law. For Washington residents, a release or waiver of rights executed by a franchisee shall not include rights under the Washington Franchise Investment Protection Act, unless executed pursuant to a negotiated settlement after the franchise agreement is in effect and where the parties are represented by independent counsel.
This means that Chocolate Fish Coffee franchisees in Maryland retain their rights and protections under Maryland's franchise laws, regardless of any release agreement. Similarly, Chocolate Fish Coffee franchisees in Washington maintain their rights under the Washington Franchise Investment Protection Act unless specific conditions are met, such as a negotiated settlement with independent legal representation.
Prospective franchisees should carefully review Exhibit C and understand how these state-specific addenda may affect their rights and obligations, especially if they reside in Maryland or Washington. It is advisable to seek legal counsel to fully understand the implications of these addenda in the context of the franchise agreement.