factual

For Crave franchises, can a franchisee bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law?

Crave Franchise · 2025 FDD

Answer from 2025 FDD Document

The appropriate sections of the Franchise Agreement are amended to permit a franchisee to bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.

Source: Item 23 — RECEIPTS (FDD pages 63–253)

What This Means (2025 FDD)

According to Crave's 2025 Franchise Disclosure Document, if you are a franchisee in Maryland, you are permitted to bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. This amendment to the franchise agreement ensures that franchisees are not restricted from pursuing legal action under Maryland's franchise laws.

Specifically, the FDD includes a State Addendum for Maryland that modifies the franchise agreement to allow such lawsuits. This addendum also clarifies that any claims under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise. This means a franchisee has a limited time to file a lawsuit, so it's important to be aware of this deadline.

Furthermore, the 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 ensures that franchisees do not waive their rights to pursue claims under this law even when renewing or transferring their franchise. Additionally, any statements or acknowledgments signed by a franchisee cannot waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Crave or its representatives.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.