What statute of limitations applies to claims arising under the Maryland Franchise Registration and Disclosure Law for a Cool Binz franchise?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
6L, the following is added at the end of Sections 10.B.8, 11.C., and 12.A. of the Agreement:
The general release required as a condition of renewal, sale, and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
3. Enforcement:
The following is added at the end of Section 15.F. and 15.K. of the Agreement:
Any limitation of claims provisions shall not act to reduce the three (3) year statute of limitations afforded a franchisee for bringing a claim arising under the Maryland Franchise Registration and Disclosure Law. Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise.
4. Dispute Resolution Procedures:
Pursuant to Section 14-216(c)(25)
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, a franchisee has three years to bring a claim under the Maryland Franchise Registration and Disclosure Law. This three-year statute of limitations begins from the date Cool Binz grants the franchise. This means that any legal action related to violations of the Maryland Franchise Registration and Disclosure Law must be initiated within this three-year window.
This provision is specifically designed to protect franchisees' rights under Maryland law. The FDD emphasizes that no statement, questionnaire, or acknowledgment signed by the franchisee can waive claims related to state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Cool Binz or its representatives. This ensures that franchisees retain their legal recourse despite any agreements or paperwork signed at the start of the franchise relationship.
Furthermore, the FDD clarifies that any general release required for renewal, sale, or transfer of the franchise does not apply to liabilities under the Maryland Franchise Registration and Disclosure Law. This prevents Cool Binz from using standard release clauses to avoid legal responsibilities under Maryland franchise regulations. The FDD also specifies that while Cool Binz typically requires lawsuits to be commenced in Michigan, claims arising under the Maryland Franchise Registration and Disclosure Law can be brought in Maryland, providing a more convenient legal venue for franchisees in that state.