conditional

Under what conditions do the Maryland provisions apply to the Cream franchise agreement?

Cream Franchise · 2025 FDD

Answer 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 Cream's 2025 Franchise Disclosure Document, the Maryland provisions are annexed to and form part of the franchise agreement under specific conditions. These provisions apply if (a) the franchisee is a resident of Maryland, (b) the franchised business is or will be operated in Maryland, or (c) the offer of the franchise was made or accepted in Maryland. This means that if any of these three conditions are met, certain sections of the franchise agreement are modified to comply with Maryland law.

Specifically, these modifications address issues such as releases required for renewal or transfer, the enforceability of termination provisions under bankruptcy law, and the franchisee's right to file lawsuits in Maryland for violations of the Maryland Franchise Registration and Disclosure Law. For instance, any release required as a condition of renewal, sale, or transfer will not apply to claims arising under the Maryland Franchise Registration and Disclosure Law.

Furthermore, the FDD clarifies that a franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration Disclosure Law, and any such claims must be brought within 3 years after the grant of the franchise. These stipulations ensure that Cream franchisees in Maryland are afforded specific protections and rights under Maryland law, regardless of conflicting terms in the standard franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.