What Maryland law governs the Dermani Medspa franchise registration and disclosure as referenced in the addendum?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
MARYLAND ADDENDUM TO FRANCHISE AGREEMENT
To the extent the Maryland Franchise Registration and Disclosure Law, Md. Code Bus. Reg. §§14- 201 – 14-233 applies, the terms of this Addendum apply.
- Notwithstanding anything to the contrary contained in the Franchise Agreement, to the extent that the Franchise Agreement contains provisions that are inconsistent with the following, such provisions are hereby amended:
All representations requiring prospective franchisees to assent to a release, estoppel or waiver of liability are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.
Nothing in the Franchise Agreement prevents the franchisee from bringing a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
Nothing in the Franchise Agreement operates to reduce the 3-year statute of limitations afforded to a franchisee for bringing a claim arising under the Maryland Franchise Registration and Disclosure Law. Further, any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, the Maryland Franchise Registration and Disclosure Law, specifically Md. Code Bus. Reg. §§14-201 – 14-233, governs the franchise registration and disclosure for Dermani Medspa franchises in Maryland. The FDD includes a Maryland addendum to both the Franchise Agreement and the Area Development Agreement that applies to the extent that the Maryland Franchise Registration and Disclosure Law is applicable.
This addendum modifies any provisions in the Franchise Agreement or Area Development Agreement that are inconsistent with the Maryland Franchise Registration and Disclosure Law. Specifically, it ensures that franchisees cannot waive rights or claims under this law, including those related to fraud. It also confirms that franchisees can bring lawsuits in Maryland for claims arising under this law.
Furthermore, the addendum clarifies that the statute of limitations for claims under the Maryland Franchise Registration and Disclosure Law is three years from the grant of the franchise, and the Franchise Agreement cannot reduce this period. The Maryland Securities Commissioner also requires a financial assurance based on Dermani Medspa's financial condition, which results in the deferral of initial fees and payments until Dermani Medspa completes its pre-opening obligations or the first franchise under the development agreement opens.