Under what conditions can a Cool Binz franchisee bring a lawsuit in Maryland?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
Pursuant to Section 14-216(c)(25) of the Maryland Franchise Registration and Disclosure Law, the following is added at the end of Sections 15.F. and 15.H. of the Agreement:
You may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, a franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. This provision ensures that Cool Binz franchisees operating in Maryland have the right to seek legal recourse within the state's legal framework for issues specifically covered by Maryland's franchise laws. This is particularly relevant because franchise laws are designed to protect franchisees from unfair practices by franchisors.
This right is specifically protected by adding a statement to Sections 15.F. and 15.H. of the Franchise Agreement, reinforcing the franchisee's ability to pursue legal action under Maryland law. Additionally, any limitations of claims provisions within the agreement will not reduce the three-year statute of limitations afforded to a franchisee for bringing a claim under the Maryland Franchise Registration and Disclosure Law. This means a franchisee has up to three years from the grant of the franchise to bring such a claim.
Furthermore, the representations, acknowledgements, and affirmations made by the franchisee will not act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Act. This prevents Cool Binz from using standard acknowledgements to circumvent the franchisee's rights under Maryland law. This ensures that franchisees cannot inadvertently waive their rights through standard contractual language, providing an additional layer of protection.