Does the Cinnaholic addendum for Maryland preclude a developer from entering into litigation with the franchisor in Maryland?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- Under certain circumstances, the Agreement requires Developer to submit to a court proceeding in the State where Franchisor's principal executive office is located. These provisions may run contrary to the Maryland Franchise Registration and Disclosure Law. Therefore, nothing will preclude Developer from being able to enter into litigation with Franchisor in Maryland.
-
- Any claims arising under the Maryland Franchisor Registration and Disclosure Law must be brought within three years after the grant of the franchise.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 42–50)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the addendum for Maryland clarifies a developer's right to enter into litigation with Cinnaholic in Maryland. Specifically, the addendum states that nothing in the agreement will prevent a developer from initiating legal proceedings against Cinnaholic in the state of Maryland.
This provision addresses potential conflicts with the standard agreement, which might otherwise require developers to submit to court proceedings in the state where Cinnaholic's principal executive office is located. The addendum acknowledges that such provisions could contradict Maryland's Franchise Registration and Disclosure Law.
This modification ensures that Cinnaholic developers in Maryland retain their legal rights within the state, offering them a local venue for resolving disputes with the franchisor. However, any claims arising under the Maryland Franchisor Registration and Disclosure Law must be brought within three years after the grant of the franchise.