In what state must any proceeding relating to or arising out of the Crawl Space Ninja agreement be held?
Crawl_Space_Ninja Franchise · 2024 FDDAnswer from 2024 FDD Document
Section 20.2 of the Franchise Agreement is hereby modified such that Franchisor agrees to select as the place for mediation a location within the State of Indiana and the laws of the State of Indiana shall apply to the mediation proceedings.
Section 20.6 of the Franchise Agreement is hereby modified by deleting everything in the first sentence thereof after the words "commenced within" and replacing the deleted portion with "two (2) years after the violation of IC Stat. 23-2 and, with respect to other claims, three (3) years after discovery by the Franchisee/Developer of the facts constituting the violation."
Any covenant not to compete in the Franchise Agreement which extends beyond the termination of such agreement (whichever are applicable) may not be enforceable under Indiana law.
Notwithstanding anything to the contrary in Section 20.3 of the Franchise Agreement, the laws of the State of Indiana shall govern the construction and enforcement of these agreements.
MARYLAND ADDENDUM TO THE FRANCHISE DISCLOSURE DOCUMENT, FRANCHISE AGREEMENT, AND RELATED AGREEMENTS
For franchises and franchisees subject to the Maryland Franchise Registration and Disclosure Law, the following information replaces, supplements and/or otherwise amends, as the case may be, the corresponding disclosures in the main body of the text of the Crawlspace Ninja Franchising, LLC Franchise Disclosure Document, Franchise Agreement, and related agreements, as indicated:
Item 17.
The general release required as a condition to renewal, sale, and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
With respect to this Item's discussion of our right to terminate you upon your bankruptcy, this provision in the Franchise Agreement may not be enforceable under federal bankruptcy law (11 U.S.C. §101 et. seq.).
A franchisee may bring a lawsuit in Maryland for claims 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 a franchise.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to the 2024 Crawl Space Ninja Franchise Disclosure Document, the state in which proceedings related to the franchise agreement must be held depends on whether the franchisee is located in Indiana or not. For franchisees located in Indiana, Section 20.2 of the Franchise Agreement is modified such that Crawl Space Ninja agrees to select a location within the State of Indiana for mediation, and Indiana law will apply to the mediation proceedings.
For franchisees located in Maryland, a franchisee may bring a lawsuit in Maryland for claims 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 a franchise.
For franchisees not located in Indiana or Maryland, the FDD does not specify a particular state for proceedings. Prospective franchisees should inquire with Crawl Space Ninja regarding the venue for legal proceedings and ensure they understand the implications of this clause, including travel costs and the application of specific state laws.