What does the Deka Lash franchise agreement say about resolving disputes through arbitration in Maryland?

According to the 2024 Deka Lash Franchise Disclosure Document, the Maryland Addendum addresses dispute resolution through arbitration. It acknowledges that the standard franchise agreement mandates arbitration for resolving disputes. However, it also points out that Maryland franchise regulations consider it an unfair or deceptive practice to force a franchisee to waive their right to sue in Maryland courts for violations of Maryland franchise law.

The addendum highlights a potential conflict between the Federal Arbitration Act and Maryland's stance on protecting franchisees' rights to litigate claims under Maryland franchise law. This means there is uncertainty regarding whether the arbitration clause in the Deka Lash franchise agreement is fully enforceable in Maryland. A prospective franchisee should be aware that while the agreement specifies arbitration, Maryland law may allow them to pursue legal action in certain circumstances.

This addendum serves to inform potential Deka Lash franchisees in Maryland of their rights under state law, particularly concerning dispute resolution. It clarifies that signing the franchise agreement does not automatically waive their right to file a lawsuit in Maryland for violations of franchise law, despite the arbitration clause. Deka Lash is required to provide this clarification to ensure compliance with Maryland franchise regulations and to protect the franchisee's legal rights within the state.