Does the Crisp & Green Maryland addendum specify any required actions by the franchisee?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD 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.
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 includes stipulations that may require specific actions from the franchisee. Specifically, the addendum states that any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise. This means a franchisee needs to be aware of this time limit and take action within that period if they have a claim.
Additionally, while the franchise agreement typically requires litigation to be held at the principal executive office location, the addendum clarifies that franchisees may sue in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. However, this is subject to the mediation and arbitration provisions of the franchise agreement and area development agreement, implying the franchisee must still engage in those processes.
Furthermore, the addendum addresses the enforceability of termination clauses related to bankruptcy. While the agreement allows for termination upon bankruptcy, the addendum notes this might not be enforceable under federal bankruptcy law, but Crisp & Green will enforce it to the extent permissible. This suggests the franchisee may need to take action to protect their interests in the event of bankruptcy, depending on how Crisp & Green chooses to proceed. Therefore, Crisp & Green franchisees in Maryland should be aware of these stipulations and seek legal counsel to ensure compliance and protection of their rights.