What section of the Cicis Franchise Agreement addresses 'Jurisdiction and Venue; Governing Law' and how is it modified by the Maryland Rider?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
- GOVERNING LAW. The following paragraph is added to the end of Section 17.E. ("Jurisdiction and Venue; Governing Law") of the Franchise Agreement:
Notwithstanding the foregoing, (1) any state law regulating the offer or sale of franchises or governing the relationship of a franchisor and its franchisee will not apply unless its jurisdictional requirements are met independently without reference to this section, and (2)
Maryland law will apply to claims arising under the Maryland Franchise Registration and Disclosure Law.
- CHOICE OF FORUM. The following language is added to the end of Section 17.E ("Jurisdiction and Venue; Governing Law") of the Franchise Agreement:
Notwithstanding the foregoing, you may bring an action in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
- LIMITATIONS OF LIABILITY. Section 17.G.(3) ("Waiver of Damages; Waiver of Jury Trial; Limitation of Liability") of the Franchise Agreement is amended by adding the following:
Notwithstanding the forgoing, you may bring any claims arising under the Maryland Franchise Registration and Disclosure Law within 3 years after Company grants Franchisee the franchise.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 58–64)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, Section 17.E of the Franchise Agreement covers 'Jurisdiction and Venue; Governing Law'. The Maryland Rider modifies this section by adding specific provisions related to Maryland law and legal actions.
Specifically, the Rider states that any state law regulating the offer or sale of franchises or governing the franchisor-franchisee relationship will not apply unless its jurisdictional requirements are met independently. However, Maryland law will apply to claims arising under the Maryland Franchise Registration and Disclosure Law. This means that if a Cicis franchisee in Maryland has a claim under Maryland franchise law, that state's law will govern the claim.
Additionally, the Rider allows a franchisee to bring an action in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, regardless of what the standard franchise agreement might say about jurisdiction. Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after Cicis grants the franchise.