factual

What right of the franchisee does the Maryland Amendment preserve regarding the jurisdiction of courts for Degree Wellness?

Degree_Wellness Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. 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 ensures that the franchisee retains the right to submit legal matters to the jurisdiction of Maryland courts. This preservation of rights is specifically tied to Section 14-216(c)(25) of the Maryland Franchise Registration and Disclosure Law. This means that despite any clauses in the standard franchise agreement that might suggest otherwise, a Degree Wellness franchisee in Maryland can pursue legal claims related to their franchise agreement within the Maryland court system.

This provision is significant because it prevents Degree Wellness from forcing franchisees to resolve disputes in a different state or through a potentially less favorable legal process. Many franchise agreements include clauses that mandate arbitration or specify a particular jurisdiction for legal proceedings, which may not always be convenient or advantageous for the franchisee. The Maryland Amendment effectively overrides such clauses to the extent they conflict with the franchisee's right to access Maryland courts for claims arising under Maryland franchise law.

It is important to note that this right applies specifically to claims arising under the Maryland Franchise Registration and Disclosure Law. Other types of disputes might still be subject to the standard terms of the franchise agreement, including any arbitration clauses or forum selection provisions. However, for matters directly related to Maryland franchise law, Degree Wellness franchisees are guaranteed the ability to seek resolution within the state's legal system. This provides an added layer of protection and ensures that franchisees have access to a local legal forum familiar with Maryland's franchise regulations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.