factual

What law is recognized in the Maryland Franchise Agreement Amendment for Dryer Vent Squad?

Dryer_Vent_Squad Franchise · 2024 FDD

Answer from 2024 FDD Document

MARYLAND FRANCHISE AGREEMENT AMENDMENT

Amendments to the Dryer Vent Squad Franchise Agreement:

In recognition of the requirements of the Maryland Franchise Registration and Disclosure Law, the parties to the attached DVS Holdings, Inc. Franchise Agreement (the "Franchise Agreement"), as follows:

    1. The franchise agreement provides that disputes are resolved through arbitration. A Maryland franchise regulation states that it is an unfair or deceptive practice to require a franchisee to waive its right to file a lawsuit in Maryland claiming a violation of the Maryland Franchise Law. In light of the Federal Arbitration Act, there is some dispute as to whether this forum selection requirement is legally enforceable.
    1. The general release required as a condition of renewal, sale, and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
    1. Article 18.G. of the Franchise Agreement, under the heading "Choice of Law, Non-Binding Mediation, Binding Arbitration, and Consent to Jurisdiction," shall be amended by the addition of the following statement added to Article 18.G. of the Franchise Agreement:
    • A franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
    1. Article 18.I. of the Franchise Agreement, under the heading "Limitations of Claims," shall be amended by the addition of the following statement added to Article 18.I. of the Franchise Agreement:

Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise.

A general release required as a condition of renewal, sale and/or assignment or transfer of a Franchise Agreement shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law

    1. 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.
    1. Each provision of this amendment shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the Maryland Franchise Registration and Disclosure Law are met independently without reference to this amendment.

Source: Item 23 — RECEIPTS (FDD pages 51–207)

What This Means (2024 FDD)

According to the 2024 Dryer Vent Squad Franchise Disclosure Document, the Maryland Franchise Agreement Amendment recognizes the Maryland Franchise Registration and Disclosure Law. This law is referenced in several provisions within the amendment to protect the rights of franchisees in Maryland.

Specifically, the amendment ensures that general releases required for renewal, sale, or transfer of the franchise do not apply to liabilities under the Maryland Franchise Registration and Disclosure Law. This means a Dryer Vent Squad franchisee in Maryland cannot be forced to waive their rights under this law as a condition of these transactions. The amendment also explicitly allows a franchisee to bring a lawsuit in Maryland for claims arising under this law, reinforcing their legal recourse.

Furthermore, any claims under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the franchise grant. This sets a clear statute of limitations for such claims. In case of conflicting laws, the amendment stipulates that Maryland law will prevail if required by the Maryland Franchise Registration and Disclosure Law. This ensures that Maryland franchisees are protected by their state's franchise-specific regulations.

Finally, the amendment clarifies that any representations requiring prospective franchisees to waive liability do not act as a waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. Each provision of the amendment is effective only to the extent that the jurisdictional requirements of the Maryland Franchise Registration and Disclosure Law are independently met, ensuring the law's provisions are fully respected.

Disclaimer: This information is extracted from the 2024 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.