What is the statute of limitations for bringing a claim under the Maryland Franchise Registration and Disclosure Law for a Cool Binz franchise?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
Item 17.U. Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought by you within three years after the grant of the Franchise.
Despite any contradicting provision in the Franchise Agreement, you have three years from the date on which we grant you the franchise to bring a claim under the Maryland Franchise Registration and Disclosure Law.
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 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 period begins after Cool Binz grants the franchise.
This disclosure is particularly important for prospective franchisees in Maryland because it clarifies the time frame within which they can take legal action regarding any issues arising from the franchise agreement or its sale. This protection is in place despite any other clauses within the franchise agreement that might suggest a shorter limitation period.
Cool Binz explicitly states that no statement, questionnaire, or acknowledgment signed by the franchisee can waive claims or disclaim reliance on franchisor statements, reinforcing the franchisee's rights under Maryland law. This ensures that franchisees are not unknowingly forfeiting their legal rights at the commencement of the franchise relationship.