What section of the Crisp & Green Franchise Agreement addresses the forum for litigation?
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 the 2024 Crisp & Green Franchise Disclosure Document, the forum for litigation is addressed in addendums to the Area Development Agreement for specific states.
For instance, the Maryland Addendum revises Item 17, "Renewal, Termination, Transfer and Dispute Resolution," to allow franchisees to sue in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, despite the standard agreement requiring litigation in the city where Crisp & Green's principal executive office is located. This is subject to the mediation and arbitration provisions in the franchise agreement and area development agreement. The addendum also specifies that any claims under Maryland law must be brought within three years of the franchise grant.
Similarly, the Minnesota Addendum states that Minnesota law prohibits Crisp & Green from requiring litigation to be conducted outside of Minnesota. The New York Addendum references the franchisee's rights under Article 33 of the General Business Law of New York, ensuring that the non-waiver provisions of GBL Sections 687.4 and 687.5 are satisfied. These addendums highlight that the specific venue and legal rights may vary based on the franchisee's location and relevant state laws, potentially modifying the standard terms of the franchise agreement.