Does the amendment to Item 17 of the Floyds 99 FDD affect all franchisees or only those in Maryland?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
ADDENDUM TO THE FLOYD'S 99 FRANCHISING, LLC FRANCHISE DISCLOSURE DOCUMENT FOR THE STATE OF MARYLAND
The following provisions apply to all Franchises offered and sold to residents of the State of Maryland and Franchises to be operated in the State of Maryland:
Item 17 is amended as follows:
- a. The Franchise Agreement provides for termination upon bankruptcy. This provision may not be enforceable under federal bankruptcy law (11 U.S.C.A. §§ 101 et seq.).
- b. Pursuant to the Code of Maryland Regulations (COMAR) 02.02.08.16L, 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.
- c. You may bring any cause of action against us in any court of competent jurisdiction, including the state or federal courts of Maryland.
- d. Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the amendment to Item 17 specifically applies to franchisees in Maryland. The document includes an addendum exclusively for the state of Maryland, which outlines provisions that apply to all franchises offered and sold to residents of Maryland, as well as franchises that will operate within the state.
This addendum modifies certain aspects of Item 17 of the Franchise Agreement. These modifications include stipulations regarding termination upon bankruptcy, the scope of general releases, the jurisdiction for bringing causes of action, and the timeframe for claims arising under Maryland franchise law.
For prospective Floyds 99 franchisees, this means that if they are considering opening a franchise in Maryland, they should pay close attention to the specific amendments to Item 17 outlined in the Maryland addendum. These amendments address legal considerations specific to Maryland and could impact their rights and obligations under the Franchise Agreement. Franchisees outside of Maryland would not be subject to these specific changes to Item 17.