What is the purpose of the Addendum to the Crisp & Green Franchise Agreement for the State of Maryland?
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 addendum to the franchise agreement for Maryland is included to comply with the Maryland Franchise Registration and Disclosure Law, Maryland Code of Business Regulation §§ 14-201 - 14-233.
Specifically, the addendum modifies certain provisions of the standard Crisp & Green franchise agreement to provide additional protections to franchisees in Maryland. It amends Item 17 regarding renewal, termination, transfer, and dispute resolution to ensure that general release language does not waive claims arising under Maryland franchise law. It also clarifies that franchisees can sue in Maryland for claims under the Maryland Franchise Registration and Disclosure Law, despite the standard agreement's requirement for litigation to be held at the principal executive office.
Additionally, the addendum addresses the enforceability of termination upon bankruptcy under federal bankruptcy law and sets a three-year limitation for bringing claims under the Maryland Franchise Registration and Disclosure Law. These modifications ensure that the Crisp & Green franchise agreement adheres to Maryland law and provides clarity on franchisees' rights and obligations within the state.