Is the Franchise Disclosure Questionnaire applicable for Kidokinetics franchise sales to residents of Maryland?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
FRANCHISE DISCLOSURE QUESTIONNAIRE
(This questionnaire is not to be used for any franchise sale in or to residents of California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin)
As you know, Kidokinetics Franchise LLC ("we" or "us"), and you are preparing to enter into a Franchise Agreement for the operation of a Kidokinetics franchise. You cannot sign or date this questionnaire the same day as the Receipt for the Franchise Disclosure Document, but you must sign and date it the same day you sign the Franchise Agreement. Please review each of the following questions carefully and provide honest responses to each question. If you answer "No" to any of the questions below, please explain your answer in the table provided below.
Do not sign this Questionnaire if you are a resident of Maryland or if the franchise is to be operated in Maryland.
Source: Item 23 — RECEIPT (FDD pages 59–205)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the Franchise Disclosure Questionnaire is not to be used for any franchise sale in or to residents of Maryland. The document explicitly states that prospective franchisees who are residents of Maryland should not sign the questionnaire, nor should it be signed if the franchise is to be operated in Maryland.
However, the FDD also includes amendments specific to Maryland. These amendments address Item 17 of the FDD and the Franchise Agreement, clarifying that the general release required for renewal, sale, or transfer does not apply to liabilities under the Maryland Franchise Registration and Disclosure Law. Additionally, representations in the Franchise Agreement do not act as a release, estoppel, or waiver of any liability under Maryland law. Franchisees may bring lawsuits in Maryland for claims arising under this law within three years of the franchise grant.
These amendments also state that any representations requiring franchisees to release, waive, or estop liability are not intended to do so under the Maryland Franchise Registration and Disclosure Law. Furthermore, the franchisor is required to have a financial assurance due to its financial condition, as mandated by the Maryland Securities Commissioner. These modifications suggest that while the standard Franchise Disclosure Questionnaire is not applicable, specific legal protections and requirements are in place for Kidokinetics franchisees in Maryland.