Must arbitration be conducted in accordance with the terms of the Deck Medic agreement?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
ffective only to the extent, with respect to such provision, that the jurisdictional requirements of the Illinois Franchise Disclosure Act (815 ILCS 705/1 to 705/45) are met independently without reference to this amendment.
IN WITNESS WHEREOF, the parties have duly executed and delivered this Illinois amendment to Deck Medic, Inc. Franchise Agreement on the same date as the Franchise Agreement was executed.
| Franchisor: Deck Medic, Inc. | Franchisee: | | |---------------------------------|---------------------|--| | By: | Signature | | | Signature | | | | Name and Title (please print) | Name (please print) | | | Dated | Dated Signature Name (please print) Dated | |
MARYLAND FRANCHISE AGREEMENT AMENDMENT
Amendments to the Deck Medic Franchise Agreement:
In recognition of the requirements of the Maryland Franchise Registration and Disclosure Law, the parties to the attached Deck Medic, Inc. Franchise Agreement (the "Franchise Agreement"), as follows:
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- The franchise agreement provides that disputes are resolves through arbitration. A Maryland franchise regulation states that it is an unfair or deceptive practice to require a franchisee to waive its right to file a lawsuit in Maryland claiming a violation of the Maryland Franchise Law.
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, the franchise agreement stipulates that disputes are resolved through arbitration. However, the Maryland Franchise Registration and Disclosure Law raises concerns about whether requiring a franchisee to waive their right to file a lawsuit in Maryland constitutes an unfair practice.
Specifically, the FDD includes an amendment for Maryland franchisees clarifying that they retain the right to bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, regardless of the arbitration clause in the standard agreement. This amendment acknowledges a potential conflict between the franchise agreement's standard arbitration clause and Maryland law.
Furthermore, for franchises purchased in Washington, the FDD states that the Washington Franchise Investment Protection Act may supersede the franchise agreement in areas such as termination and renewal. In any arbitration or mediation involving a franchise purchased in Washington, the site will be either in the state of Washington or in a place mutually agreed upon at the time of the proceedings. Therefore, while the Deck Medic agreement generally mandates arbitration, these amendments create exceptions and stipulations for franchisees in Maryland and Washington, ensuring compliance with local franchise laws.