What is the deadline for bringing claims under the Maryland Franchise Registration and Disclosure Law for an Itan franchise?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
In recognition of the requirements of the Maryland Franchise Registration and Disclosure Law (the "Maryland Franchise Law"), the Disclosure Document is amended as follows:
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- Item 17 of the Disclosure Document is amended to add the following:
- a. The general release required as a condition of renewal, sale and/or assignment/transfer shall not apply any liability under the Maryland Franchise Registration and Disclosure Law.
- b. A franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
- c. Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise.
- d. In the event of a conflict of laws to the extent required by the Maryland Franchise Registration and Disclosure Law, Maryland law shall prevail.
- e. The Franchise Agreement and Supplemental Agreements provide for termination upon bankruptcy. This provision may not be enforceable under federal bankruptcy law (11 U.S.C. Section 101, et seq.).
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, a franchisee must bring any claims arising under the Maryland Franchise Registration and Disclosure Law within three years after the grant of the franchise. This amendment to the disclosure document specifically addresses the requirements of Maryland law. This means that if an Itan franchisee in Maryland believes Itan has violated the Maryland Franchise Registration and Disclosure Law, they have a limited time to take legal action.
This three-year deadline is a critical consideration for prospective Itan franchisees in Maryland. It highlights the importance of carefully reviewing the franchise agreement and disclosure documents, understanding their rights under Maryland law, and seeking legal advice promptly if they believe those rights have been violated. Missing this deadline could prevent a franchisee from pursuing a legal claim, regardless of its merit.
It is also important to note that the general release required as a condition of renewal, sale, and/or assignment/transfer does not apply to any liability under the Maryland Franchise Law. This protects the franchisee's rights under Maryland law, ensuring that they cannot be forced to waive their legal claims. Furthermore, the FDD states that a franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, and that Maryland law shall prevail in the event of a conflict of laws to the extent required by the Maryland Franchise Registration and Disclosure Law.