Does the Crisp & Green Maryland addendum prohibit any specific actions by the franchisee?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, the Maryland addendum does not explicitly prohibit any specific actions by the franchisee. However, it does modify certain terms of the franchise agreement and area development agreement to provide additional protections and rights to franchisees under Maryland law.
Specifically, the addendum states that the general release language required as a condition of renewal, sale, assignment, or transfer will not apply to claims arising under the Maryland Franchise Registration and Disclosure Law. This means that a franchisee is not prevented from pursuing claims under Maryland franchise law, even if they have signed a general release.
Additionally, while the standard agreements require litigation to be held at Crisp & Green's principal executive office, franchisees may sue in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, subject to the mediation and arbitration provisions of the agreements. The addendum also clarifies that any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise. These modifications aim to ensure that Maryland franchisees retain their rights under state law and have a venue to pursue legal claims within Maryland.