Is the Expense Reduction Analysts franchise agreement amendment applicable to all franchisees, or only those in Maryland?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
ADDENDUM TO REGIONAL FRANCHISE DISCLOSURE DOCUMENT FOR THE STATE OF MARYLAND
Item 17
The general release required as a condition to renewal, sale, and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
With respect to this Item's discussion of our right to terminate you upon your bankruptcy, this provision in the Franchise Agreement may not be enforceable under federal bankruptcy law (11 U.S.C. §101 et. seq.).
A franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of a franchise.
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.
No statement, questionnaire or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of: (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller or other person acting on behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
AMENDMENT TO THE FRANCHISE AGREEMENT REQUIRED BY THE STATE OF MARYLAND
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (REGIONAL FRANCHISEES) (FDD pages 52–57)
What This Means (2025 FDD)
According to the 2025 Expense Reduction Analysts FDD, the franchise agreement amendment applies specifically to franchisees in Maryland. The document includes an "AMENDMENT TO THE FRANCHISE AGREEMENT REQUIRED BY THE STATE OF MARYLAND." This amendment addresses various aspects of the franchise relationship, including lawsuits, releases, and modifications to specific sections of the agreement.
The amendment outlines particular stipulations for Expense Reduction Analysts franchisees in Maryland, such as the ability to bring lawsuits in Maryland under the Maryland Franchise Registration and Disclosure Law. It also clarifies that representations requiring franchisees to waive liability do not apply to liabilities incurred under the same law. Furthermore, the amendment modifies specific sections of the franchise agreement to ensure compliance with Maryland law.
For a prospective Expense Reduction Analysts franchisee, this means that the standard franchise agreement is modified by an addendum to comply with the laws of certain states. If the prospective franchisee is in Maryland, the terms of the amendment will supersede the original agreement in case of conflict. This ensures that the franchisee's rights under Maryland law are protected. Similar addenda exist for other states, such as North Dakota, Virginia, Minnesota, California, and Hawaii, indicating that Expense Reduction Analysts tailors its franchise agreements to comply with specific state regulations.