For claims arising under the Maryland Franchise Registration and Disclosure Law, can a Fitstop franchisee bring a lawsuit in Maryland?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
Item 17 of the Disclosure Document is supplemented by the following:
- The Franchise Agreement provides for termination upon bankruptcy. These provisions may not be enforceable under federal bankruptcy law.
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- Any provisions requiring you to sign a general release of claims against us, including upon execution of the Franchise Agreement or a successor Franchise Agreement, refund of initial fees, or transfer, does not release any claim you may have under the Maryland Franchise Registration and Disclosure Law.
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- Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise.
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- A franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
Each provision of these Additional Disclosures 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 these Additional Disclosures.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, a franchisee can bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. However, such claims must be brought within 3 years after the grant of the franchise.
This means that if a Fitstop franchisee in Maryland believes Fitstop has violated the Maryland Franchise Registration and Disclosure Law, they have the right to sue Fitstop in a Maryland court. This is a beneficial provision for franchisees as it allows them to seek legal recourse within their own state, potentially reducing the costs and complexities associated with out-of-state litigation.
It's important to note that this right is specifically tied to claims arising under the Maryland Franchise Registration and Disclosure Law. Any other types of claims might be subject to different legal stipulations as outlined in the franchise agreement. Additionally, the franchisee must adhere to the three-year statute of limitations, meaning they must file their lawsuit within three years of receiving the franchise grant.