What is the relationship between the Franchise Agreement and the Addendum for Maryland for Crisp & Green?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
s under 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 Crisp & Green's 2024 Franchise Disclosure Document, the Addendum to the Franchise Agreement for the state of Maryland serves to amend the original agreement in order to comply with Maryland franchise law. For Crisp & Green franchisees in Maryland, the provisions outlined in the addendum take precedence over any conflicting terms in the standard Franchise Agreement.
Specifically, the Maryland addendum addresses dispute resolution, termination, and claims arising under Maryland's franchise regulations. It clarifies that the general release language required for renewal or transfer does not apply to claims under Maryland Franchise Registration and Disclosure Law. Additionally, while the standard agreement may stipulate litigation in the location of Crisp & Green's principal office, franchisees can sue in Maryland for claims arising under Maryland law, although mediation and arbitration provisions still apply.
The addendum also addresses the enforceability of termination clauses related to bankruptcy, acknowledging that federal bankruptcy law may supersede these provisions. Furthermore, any claims arising under Maryland Franchise Registration and Disclosure Law must be brought within three years of the franchise grant. Similarly, the Addendum to the Area Development Agreement states that its provisions supersede any conflicting elements of the standard Area Development Agreement for franchises sold to Maryland residents.
In summary, the Maryland addenda to both the Franchise Agreement and the Area Development Agreement ensure that Crisp & Green's franchise operations comply with Maryland law, providing specific protections and rights to franchisees within the state. Prospective franchisees in Maryland should carefully review these addenda to understand their rights and obligations under Maryland law, as these addenda modify the original agreements.