Does the Floyds 99 rider to the Development Agreement for Maryland affect the developer's ability to terminate the agreement?
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 | |||
| 3. | The following statement is added to the end of Sections 13.2 and 13.16: | ||
| Law. | All representations requiring prospective franchisees to assent to a release, | ||
| estoppel or waiver of liability are not intended to nor shall they act as a release, estoppel | |||
| or waiver of any liability incurred under the Maryland Franchise Registration Disclosure | |||
| written. | IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Maryland | ||
| Rider concurrently with the execution of the Development Agreement on the day and year first above | |||
| FLOYD'S 99 FRANCHISING, LLC | DEVELOPER (Print Name) | ||
| By: | By: | ||
| Title: | Title: | ||
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 includes stipulations that affect a developer's rights and obligations, particularly concerning liability, legal action, and waivers related to the Maryland Franchise Registration and Disclosure Law. Specifically, the rider states that the general release required as a condition of renewal, sale, or transfer does not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
The Floyds 99 rider also clarifies that a developer can initiate legal action against the franchisor in Maryland courts, including federal courts, for claims arising under the Maryland Franchise Registration and Disclosure Law, provided the action commences within three years of the franchise grant. This provision ensures that developers have a legal avenue within their jurisdiction for specific franchise-related claims.
Furthermore, the Floyds 99 rider emphasizes that any representations requiring prospective franchisees to waive liability do not act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration Disclosure Law. This protects the franchisee's rights under Maryland law, ensuring that they cannot be compelled to relinquish their legal protections through standard agreement clauses.