Does the Crisp & Green Maryland addendum create any exceptions to the standard Franchise Agreement?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
der any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Each provision of this Addendum shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the Indiana Deceptive Franchise Practices Law are met independently without reference to this Addendum to the Disclosure Document.
ADDENDUM TO CRISP & GREEN FRANCHISING LLC FRANCHISE DISCLOSURE DOCUMENT FOR THE STATE OF MARYLAND
In recognition of the requirements of the Maryland Franchise Registration and Disclosure Law, Maryland Code of Business Regulation §§ 14-201 - 14-233, the Franchise Disclosure Document for Crisp & Green in connection with the offer and sale of franchises for use in the State of Maryland shall be amended to include the following:
- Item 17, "Renewal, Termination, Transfer and Dispute Resolution," shall be amended by the addition of the following language:
The general release language required as a condition of renewal, sale and/or assignment or transfer will not apply to claims arising under the Maryland Franchise Registration and Disclosure Law.
Although the franchise agreement and area development agreement require litigation to be held in the city where our principal executive office is located, you may sue in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, subject to the mediation and arbitration provisions of the franchise agreement and area development agreement.
The franchise agreement and area development agreement provide for termination upon your bankruptcy. This provision might not be enforceable under federal bankruptcy law (11. U.S.C. Sections 101 et seq.), but we will enforce it to the extent enforceable.
Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of your franchise.
To the extent that any provisions of the franchise agreement or area development agreement require you to assent to any release, estoppel or waiver of liability as a condition to your purchasing a franchise, such provisions are not intended to nor shall they act as a release, estoppel or waiver of any liability under the Maryland Franchise Registration and Disclosure Law.
- Item 17(v) and (w) are modified by the insertion of the following:
"Any Franchisee may sue in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law."
3.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to the 2024 Crisp & Green Franchise Disclosure Document, the Maryland addendum does create exceptions to the standard franchise agreement and area development agreement for franchisees in Maryland.
Specifically, the addendum modifies Item 17 of the franchise agreement, "Renewal, Termination, Transfer and Dispute Resolution," to state that the general release language required for renewal, sale, assignment, or transfer does not apply to claims arising under the Maryland Franchise Registration and Disclosure Law. It also allows franchisees to sue in Maryland for claims arising under this law, despite the standard agreement requiring litigation to be held at Crisp & Green's principal executive office. The addendum clarifies that the termination of the agreement upon bankruptcy might not be enforceable under federal bankruptcy law but will be enforced to the extent permissible. Furthermore, any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise.
Additionally, the addendum to the Area Development Agreement states that termination upon bankruptcy might not be enforceable under the U.S. Bankruptcy Act, but Crisp & Green intends to enforce it to the extent enforceable. It also allows franchisees to bring lawsuits in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, with a three-year limitation from the grant of the franchise to bring such claims. These modifications ensure that Maryland franchisees retain certain rights and protections under Maryland law, overriding conflicting provisions in the standard agreements.