What sections of the Jersey Mikes Development Agreement are deleted due to Maryland law modifications?

According to Jersey Mikes's 2025 Franchise Disclosure Document, certain sections of the Development Agreement are deleted to comply with Maryland law. Specifically, the fourth paragraph of the "INTRODUCTION" on the first page of the Development Agreement is deleted. Additionally, Sections 23.1, 23.3, and 23.6 of the Development Agreement are also deleted.

These modifications are mandated by the Maryland Securities Commissioner to ensure that the franchise documents align with the Maryland Franchise Registration and Disclosure Law. This law, Md. Code Ann., Bus. Reg. §§ 14-201 - 14-233, aims to protect prospective franchisees in Maryland by ensuring fair and transparent franchise agreements.

For a potential Jersey Mikes developer in Maryland, this means that certain clauses typically found in the standard Development Agreement will not apply. These deletions likely pertain to aspects of the agreement that could be seen as conflicting with Maryland's franchise laws, such as clauses related to liability waivers or dispute resolution. Developers should carefully review the modified agreement to understand their rights and obligations under Maryland law.

Furthermore, the FDD indicates that based on Jersey Mikes's financial condition, the Maryland Securities Commissioner requires a financial assurance, which Jersey Mikes has provided in the form of a surety bond on file with the Maryland Securities Division. This provides an additional layer of protection for developers in Maryland.