In the Floyds 99 Development Agreement Rider for Maryland, what is the significance of Section 13.4?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
| Developer is dated, 20 | This Rider to the Development Agreement by and between Floyd's 99 Franchising, LLC and | ||
|---|---|---|---|
| 1. | The following statement is added at the end of Section 8.2.f: | ||
| apply to any liability under the Maryland Franchise Registration and Disclosure Law. | 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 | |||
| 2. | The following statement is added at the end of Section 13.4: | ||
| within three years after the grant of the franchise. | The Developer may commence any cause of action against the Franchisor in any court of | ||
| competent jurisdiction, including the state or federal courts of Maryland. Any claims | |||
| arising under the Maryland Franchise Registration and Disclosure Law must be brought |
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the Maryland Rider to the Development Agreement modifies Section 13.4, concerning legal claims. Specifically, a developer (franchisee) has up to three years after being granted the franchise to initiate a cause of action against Floyds 99. This action can be pursued in any court with appropriate jurisdiction, including Maryland's state or federal courts.
This addition is significant because it clarifies the timeframe and venues available to the franchisee for legal recourse. It also emphasizes that any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within this three-year window. This provides a defined period for franchisees to assess and act on any legal issues they may encounter related to their franchise agreement and the relevant Maryland laws.
This type of provision is important for franchisees as it outlines their rights and limitations regarding legal action against the franchisor. Franchise agreements often contain clauses about governing law and dispute resolution, but this addition specifically addresses the franchisee's rights under Maryland law, offering additional protection and clarity. Prospective Floyds 99 franchisees in Maryland should understand this provision to be aware of their legal rights and the time frame in which they can exercise them.