What is the relationship between the Maryland Franchise Registration and Disclosure Law and the Floyds 99 Franchise Agreement?
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.
The following statement is added to the Franchise Disclosure Document:
No statement, questionnaire, or acknowledgment 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.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the Maryland Franchise Registration and Disclosure Law has several specific relationships with the Floyds 99 Franchise Agreement for franchises offered and sold to residents of Maryland or operated in Maryland.
First, the standard Franchise Agreement provision allowing termination upon bankruptcy may not be enforceable under federal bankruptcy law. Second, any general release required as a condition of renewal, sale, or transfer of the franchise does not apply to liabilities arising under the Maryland Franchise Registration and Disclosure Law. This means a franchisee cannot waive their rights under Maryland franchise law, even when signing a general release.
Third, franchisees can bring a cause of action against Floyds 99 in any court of competent jurisdiction, including Maryland state or federal courts. Finally, any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the franchise is granted. Additionally, no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under any applicable state franchise law, including fraud, or disclaim reliance on statements made by Floyds 99. This provision supersedes any other conflicting term in any document executed in connection with the franchise.