How does the Maryland Amendment affect the choice of law language in the Degree Wellness Franchise Agreement?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The Franchise Agreement is amended by the addition of the following language to the original language that appears in the choice of law language therein:
"This section shall not in any way abrogate or reduce any of your rights as provided for in Section 14-216(c)(25) of the Maryland Franchise Registration and Disclosure Law,
including the right to submit matters to the jurisdiction of the Courts of Maryland."
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the Maryland Amendment modifies the choice of law language in the franchise agreement to protect the franchisee's rights under Maryland law. Specifically, the amendment ensures that the choice of law clause does not diminish any rights provided in Section 14-216(c)(25) of the Maryland Franchise Registration and Disclosure Law, including the right to bring matters before Maryland courts. This means that while the franchise agreement may generally be governed by the laws of another state, Maryland franchisees retain their rights and protections under Maryland franchise law.
This modification prevents Degree Wellness from enforcing provisions that might force a Maryland franchisee to waive their rights or litigate claims outside of Maryland for issues arising under Maryland's franchise laws. The amendment explicitly states that any general release required of the franchisee will not act as a waiver of liability under the Maryland Franchise Registration and Disclosure Law. Furthermore, any claims arising under this law must be brought within three years after the franchise is granted.
In practical terms, this means a Degree Wellness franchisee in Maryland has the right to resolve disputes related to Maryland franchise law within the state's legal system. This offers a level of protection and recourse that might not be available if the standard choice of law provision applied without modification. The amendment ensures that Maryland franchisees are not disadvantaged by potentially having to navigate legal proceedings in a different state or under unfamiliar laws when addressing issues specifically covered by Maryland franchise regulations.
It is important for prospective Degree Wellness franchisees in Maryland to understand this amendment, as it clarifies their legal rights and options. They should consult with an attorney to fully understand the implications of the choice of law provision and the protections afforded by Maryland law. This ensures that franchisees are aware of their ability to seek legal remedies within Maryland for any violations of the Maryland Franchise Registration and Disclosure Law.