factual

Under what circumstances can a lawsuit be brought in Maryland regarding Cinnabon?

Cinnabon Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. Item 17.v. of this Disclosure Document is modified as follows:
    • You can enter into litigation with us in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, as long as the nature of the litigation is not the type of dispute, controversy, claim, action or proceeding which would be subject to arbitration under the Franchise Agreement.
    1. Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise.

Source: Item 23 — Receipts (FDD pages 114–399)

What This Means (2025 FDD)

According to Cinnabon's 2025 Franchise Disclosure Document, a franchisee can bring a lawsuit against Cinnabon in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. However, this is allowed as long as the nature of the litigation is not the type of dispute that would be subject to arbitration under the Franchise Agreement. This means that while franchisees have the right to sue for violations of Maryland's franchise laws, they must still adhere to the arbitration clauses in their agreements for other types of disputes.

This provision ensures that Cinnabon franchisees in Maryland retain their rights under state law, preventing the franchise agreement from forcing them to waive those rights. It specifically reinforces that no release language or provision within the disclosure document or franchise agreement can be construed as a waiver of liability incurred by Cinnabon under the Maryland Franchise Registration and Disclosure Law. This protection is crucial for franchisees as it allows them to seek legal recourse if Cinnabon violates state franchise regulations.

Furthermore, any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise. This time limit is an important consideration for franchisees, as they must be aware of the deadline for filing any claims related to violations of the Maryland Franchise Registration and Disclosure Law. This statute of limitations ensures that legal actions are pursued in a timely manner, providing a reasonable window for franchisees to address any grievances they may have against Cinnabon under state law.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.