factual

Under what conditions can an Itan franchisee bring a lawsuit in Maryland?

Itan Franchise · 2025 FDD

Answer 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:

    1. 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.

Source: Item 23 — RECEIPT (FDD pages 44–190)

What This Means (2025 FDD)

According to Itan's 2025 Franchise Disclosure Document, a franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Law. However, any such claims must be brought within three years after the grant of the franchise. Additionally, 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.

This means that an Itan franchisee operating in Maryland has the right to sue Itan for violations of Maryland's franchise laws. This protection ensures that franchisees are not forced to waive their rights under Maryland law as a condition of renewing their franchise agreement or transferring ownership. The three-year limitation on bringing claims provides a specific timeframe within which a franchisee must act, which is a standard inclusion to provide legal clarity for both parties.

It is important for prospective Itan franchisees in Maryland to understand these specific provisions, as they clarify the franchisee's rights and limitations under Maryland law. The FDD also states that any acknowledgements or representations by the franchisee that disclaim the occurrence and/or acknowledge the non-occurrence of acts that would constitute a violation of the Maryland Law are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Maryland Law. This further protects the franchisee from inadvertently waiving their rights through certain representations made during the franchise application process.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.