Does the Deka Lash franchise agreement's arbitration clause potentially conflict with Maryland franchise regulations regarding the right to file a lawsuit in Maryland?

According to the 2024 Deka Lash Franchise Disclosure Document, the Maryland Addendum addresses a potential conflict between the standard franchise agreement's arbitration clause and Maryland franchise regulations. Specifically, Maryland law considers it an unfair or deceptive practice to require a franchisee to waive their right to file a lawsuit in Maryland concerning violations of Maryland Franchise Law. The Deka Lash agreement includes a provision for dispute resolution through arbitration.

The addendum acknowledges that because of the Federal Arbitration Act, there is some dispute as to whether the forum selection requirement is legally enforceable. This suggests that while Deka Lash prefers arbitration, the enforceability of this clause in Maryland may be questionable under certain circumstances.

For a prospective Deka Lash franchisee in Maryland, this means that while the franchise agreement stipulates arbitration, they may still have the right to pursue a lawsuit in Maryland if they believe Deka Lash has violated Maryland Franchise Law. It would be prudent for potential franchisees to seek legal counsel to fully understand their rights and options under both the franchise agreement and Maryland law.