Does the Floyds 99 franchise agreement specify that any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within a certain timeframe?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
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 franchise agreement for franchises offered and sold to residents of Maryland, or to be operated in Maryland, specifies a time limit for claims. Specifically, any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise. This stipulation is outlined in an addendum to Item 17 of the Franchise Agreement, which is amended for Maryland franchisees.
This requirement means that a Floyds 99 franchisee in Maryland has a limited window to bring legal action under the state's franchise laws. If a franchisee believes they have a valid claim, they must initiate legal proceedings within three years from the date the franchise was granted. Failing to do so could result in the claim being time-barred, meaning the franchisee would lose their right to sue, regardless of the claim's merit.
Such time limitations are not uncommon in franchise agreements, as they provide clarity and predictability for both the franchisor and franchisee. However, franchisees should be aware of these deadlines and consult with legal counsel promptly if they believe they have a claim. This ensures they do not inadvertently forfeit their legal rights under the Maryland Franchise Registration and Disclosure Law. This provision is specific to Maryland and does not affect franchisees in other states unless similar stipulations exist in their respective state addenda.