What does Maryland franchise regulation state regarding a Cream franchisee's right to file a lawsuit in Maryland for violations of the Maryland Franchise Registration and Disclosure Law?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
A franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure law.
- The following is added to the end of Section 17.L of the Agreement:
Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise.
- All representations requiring prospective franchisees to assent to a release, estoppel or waiver of liability are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Maryland franchise regulations address a franchisee's right to file a lawsuit in Maryland for violations of the Maryland Franchise Registration and Disclosure Law. Specifically, a Cream franchisee may bring a lawsuit in Maryland for claims arising under this law.
Furthermore, any general release within the franchise agreement will not apply to liabilities arising under the Maryland Franchise Registration and Disclosure Law if the franchised business is located in Maryland or if the franchisee is a resident of Maryland. This ensures that franchisees do not inadvertently waive their rights to pursue legal action under this specific law through standard release clauses.
It is important to note that any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise. This time limit means a franchisee needs to be aware of potential violations and act promptly to preserve their legal rights. Additionally, Maryland franchise regulations state that it is an unfair or deceptive practice to require a franchisee to waive their right to file a lawsuit in Maryland claiming a violation of the Maryland Franchise Registration and Disclosure Law.