Where can a Cream franchisee bring a suit for claims arising under the Maryland Franchise Registration Disclosure Law?

According to Cream'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 stipulation applies if the franchisee is a resident of Maryland, the franchised business operates in Maryland, or the franchise offer was made or accepted in Maryland.

This provision ensures that Cream franchisees operating in Maryland have the right to seek legal recourse within the state for any violations of the Maryland Franchise Registration and Disclosure Law. It prevents Cream from forcing franchisees to litigate such claims in other jurisdictions, which could be more costly and inconvenient for the franchisee.

It is important to note that any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise. This time limit means a Cream franchisee needs to be aware of this deadline and act promptly if they believe they have a claim.

This protection is further reinforced by a Maryland franchise regulation that considers it an unfair or deceptive practice for Cream to require a franchisee to waive their right to file a lawsuit in Maryland for violations of the Maryland Franchise Registration and Disclosure Law. However, the FDD notes there is some dispute as to whether this forum selection requirement is legally enforceable due to the Federal Arbitration Act.