Does the Eos Worldwide Franchise Agreement's requirement for arbitration to be conducted in Michigan limit a franchisee's rights under the Maryland Franchise Registration and Disclosure Law?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Agreement requires arbitration to be conducted in the State of Michigan; the requirement shall not limit any rights Franchisee may have under the Maryland Franchise Registration and Disclosure Law to bring suit in the State of Maryland.
Source: Item 22 — CONTRACTS (FDD page 74)
What This Means (2025 FDD)
According to the 2025 Eos Worldwide Franchise Disclosure Document, the requirement for arbitration to be conducted in Michigan does not limit a franchisee's rights under the Maryland Franchise Registration and Disclosure Law to bring suit in the State of Maryland. This protection is specifically outlined for Maryland franchisees.
For franchisees in Maryland, the Eos Worldwide Franchise Agreement is amended to ensure compliance with the Maryland Franchise Registration and Disclosure Law. This includes the franchisee's right to bring a lawsuit in Maryland for claims arising out of this law, with all claims to be commenced within three years after the grant of the franchise. This amendment overrides the standard Delaware governing law specified in the Franchise Agreement, ensuring Maryland law prevails in cases of conflict, as required by the Maryland Franchise Registration and Disclosure Law.
Prospective Eos Worldwide franchisees in Maryland should note that these stipulations are designed to protect their rights under Maryland law, regardless of the standard terms in the Franchise Agreement. This ensures that franchisees are not unduly restricted from pursuing legal remedies available to them under Maryland's franchise laws. Eos Worldwide also obtained a surety bond to further protect Maryland franchisees.