What sections of the Cream franchise agreement are modified by the Maryland provisions?
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.
- The following is added to the end of Sections 12.C(4), 12.E, 13.A(8), and 15.D of the Agreement:
Pursuant to COMAR 02.02.08.16L, any release required as a condition of renewal and/or assignment/transfer will not apply to claims arising under the Maryland Franchise Registration and Disclosure Law.
- The following is added to the end of Section 14.A of the Agreement:
This provision might not be enforceable under federal bankruptcy law (11 U.S.C. Sections 101 et seq.).
- Section 17.F of the Agreement is supplemented by adding the following to the end of the Section:
A Maryland franchise regulation states that it is an unfair or deceptive practice to require a franchisee to waive its right to file a lawsuit in Maryland claiming a violation of the Maryland Franchise Registration and Disclosure Law. In light of the Federal Arbitration Act, there is some dispute as to whether this forum selection requirement is legally enforceable.
- Section 17.H of the Agreement is supplemented by adding the following to the end of the Section.
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.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the Maryland provisions modify specific sections of the franchise agreement for franchisees who are residents of Maryland, operate their franchise in Maryland, or accepted the franchise offer in Maryland.
The sections of the Agreement modified are 12.C(4), 12.E, 13.A(8), 14.A, 15.D, 17.F, and 17.H and 17.L. Specifically, a clause is added to the end of Sections 12.C(4), 12.E, 13.A(8), and 15.D stating that any release required as a condition of renewal and/or assignment/transfer will not apply to claims arising under the Maryland Franchise Registration and Disclosure Law, pursuant to COMAR 02.02.08.16L.
For Section 14.A, a clause is added stating that the provision might not be enforceable under federal bankruptcy law (11 U.S.C. Sections 101 et seq.). Section 17.F is supplemented to note that Maryland franchise regulations consider it an unfair or deceptive practice to require a franchisee to waive their right to file a lawsuit in Maryland for violations of the Maryland Franchise Registration and Disclosure Law, while also acknowledging a dispute regarding the enforceability of this forum selection requirement due to the Federal Arbitration Act. Section 17.H is supplemented to clarify that a franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure law. Finally, Section 17.L is supplemented to specify that any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise.