Under what condition can a Cinnabon franchisee enter into litigation with Cinnabon in Maryland?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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.
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- 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 enter into litigation with Cinnabon in Maryland under specific conditions related to claims arising from the Maryland Franchise Registration and Disclosure Law. This law aims to protect franchisees by ensuring transparency and fair practices in franchising.
Specifically, a Cinnabon franchisee can litigate against Cinnabon in Maryland if the claims arise under the Maryland Franchise Registration and Disclosure Law. However, this is allowed only if the nature of the dispute is not subject to arbitration under the Franchise Agreement. This means that certain types of disputes, as defined in the agreement, must go through arbitration rather than litigation.
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 crucial, as franchisees lose their right to sue after this period. This provision ensures that legal claims are addressed in a timely manner, preventing stale or delayed disputes.