For Circle K franchisees in Maryland, what is the statute of limitations for bringing claims under the Maryland Franchise Registration and Disclosure Law?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise.
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- A Maryland franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
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- No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, Maryland franchisees have a limited time to bring claims under the Maryland Franchise Registration and Disclosure Law. Specifically, any such claims must be initiated within three years from the date the franchise was granted. This limitation period is crucial for prospective franchisees to understand, as it dictates the timeframe within which they can legally pursue any grievances related to franchise registration and disclosure issues.
This three-year statute of limitations means that if a Circle K franchisee in Maryland believes they have a valid claim under the Maryland Franchise Registration and Disclosure Law, they must file a lawsuit within three years of receiving the franchise. Failing to do so would likely result in the claim being time-barred, meaning the franchisee would lose their right to pursue legal action. This timeframe applies to claims regarding potential misrepresentations or omissions made during the franchise sales process.
It is also important to note that the FDD states that general releases required for renewal, sale, or transfer of the franchise do not apply to liabilities under the Maryland Franchise Registration and Disclosure Law. Furthermore, Maryland franchisees have the right to bring lawsuits in Maryland for these claims, and franchisees cannot waive these claims or disclaim reliance on statements made by Circle K or its representatives. These provisions collectively aim to protect the rights of franchisees in Maryland under the state's franchise laws.