Does the Crisp & Green Maryland addendum specify any changes to fees?
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)
Based on the 2024 Crisp & Green Franchise Disclosure Document, the Maryland addendum does not explicitly specify any changes to the fees outlined in the standard franchise agreement or area development agreement. The addendum primarily focuses on clarifying legal rights and obligations under Maryland law, particularly concerning the Maryland Franchise Registration and Disclosure Law.
The Maryland addendum includes provisions that address dispute resolution, termination conditions, and the franchisee's right to sue in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. It also clarifies that general release language required for renewal or transfer does not apply to claims under Maryland franchise law. These stipulations ensure that franchisees operating in Maryland retain their legal rights and protections under state law.
While the addendum modifies certain sections of the Area Development Agreement to align with Maryland law, it does not mention any alterations to the fee structure. Therefore, prospective Crisp & Green franchisees in Maryland should refer to the standard franchise agreement and area development agreement for details regarding initial franchise fees, development fees, royalties, and other ongoing costs. It is important to review these documents carefully and seek legal counsel to fully understand the financial obligations and potential liabilities associated with operating a Crisp & Green franchise in Maryland.