Does signing the Maryland Amendment to the Engel & Volkers Franchise Agreement subject the parties to the Maryland Franchise Registration and Disclosure law if the jurisdictional requirements of the Act are not met?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
This Amendment pertains to franchises sold in the State of Maryland that are subject to the Maryland Franchise Registration and Disclosure law (the "Act") and is for the purpose of complying with Maryland statutes and regulations. Signing this Amendment where the jurisdictional requirements of the Act are not met does not subject the parties to the provisions of the Act. Notwithstanding anything which may be contained in the body of the Franchise Agreement to the contrary, the Agreement is amended as follows:
Franchisor and Franchisee hereby agree that the Franchise Agreement dated ____, 20, will be amended as follows:
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to the 2025 Engel & Volkers Franchise Disclosure Document, signing the Maryland Amendment to the Engel & Volkers Franchise Agreement does not automatically subject the parties to the Maryland Franchise Registration and Disclosure law if the jurisdictional requirements of the Act are not met. This amendment is specifically designed to ensure compliance with Maryland statutes and regulations when those regulations are applicable.
This provision protects both Engel & Volkers and the franchisee. It clarifies that the amendment's purpose is to comply with Maryland law only when the law properly applies, preventing unintended legal consequences if the franchise operation doesn't meet the jurisdictional thresholds for Maryland regulation.
For a prospective franchisee, this means that signing the Maryland Amendment is a conditional agreement. It only comes into full effect if the franchise's operations in Maryland meet the legal requirements for being subject to the Maryland Franchise Registration and Disclosure law. Franchisees should confirm with Engel & Volkers under which circumstances the jurisdictional requirements of the Act are met.