If a Cream franchisee is a resident of Virginia, do the Maryland provisions apply?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
The following provisions are annexed to and form part of this Agreement if and only if, and in such case to the extent that: (a) you are a resident of the State of Maryland; or (b) your franchised business is or will be operated in the State of Maryland; or (c) the offer of the franchise was made or accepted in the State of Maryland.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, the Maryland provisions within the Cream franchise agreement apply specifically if (a) the franchisee is a resident of Maryland, (b) the franchised business is or will be operated in Maryland, or (c) the franchise offer was made or accepted in Maryland. Therefore, if a Cream franchisee is a resident of Virginia, the Maryland provisions would not automatically apply unless one of the three listed conditions is met.
Specifically, the FDD states that these provisions are annexed to and form part of the Franchise Agreement (or Area Development Agreement) only if one of the three conditions related to Maryland residency, business operation, or offer acceptance in Maryland is satisfied. This means that the standard franchise agreement is modified by the Maryland-specific clauses only under those circumstances.
This type of state-specific modification is common in franchising to ensure compliance with varying state franchise laws. Prospective Cream franchisees should carefully review Item 23 of the FDD and any addenda to understand which state-specific provisions apply to them based on their residency and where they plan to operate their franchise.