According to Dq Treat's 2025 Franchise Disclosure Document, specifically the addendum for the state of Maryland, Dq Treat's ability to terminate the Operating Agreement due to a franchisee's bankruptcy may not be enforceable under applicable federal law. This is in reference to 11 U.S.C.A. 101 et seq., which governs bankruptcy proceedings in the United States.

This provision is important for prospective Dq Treat franchisees in Maryland because it suggests that federal bankruptcy laws could override the standard termination clauses in the Operating Agreement. Typically, franchise agreements allow the franchisor to terminate the agreement if the franchisee declares bankruptcy. However, this addendum indicates that such termination may not be automatically enforceable in Maryland due to federal protections afforded to businesses undergoing bankruptcy.

This means that if a Dq Treat franchisee in Maryland files for bankruptcy, they might have additional legal protections against immediate termination of their franchise agreement. The franchisee may be able to continue operating the franchise while undergoing bankruptcy proceedings, subject to federal bankruptcy court decisions. This clause provides an added layer of security for franchisees in Maryland facing financial difficulties, as it prevents Dq Treat from potentially terminating the agreement solely based on the bankruptcy filing, allowing for a chance to reorganize and continue the business.