For Kidokinetics, can a franchisee bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Item 17 of the FDD and the Franchise Agreement are amended to state: "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."
Representations in the Franchise Agreement are not intended to, nor shall they act as, a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.
Item 17 of the FDD and sections of the Franchise Agreement are amended to state that you may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the Franchise.
The Franchise Agreement and Franchise Disclosure Questionnaire are amended to state that 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 and Disclosure Law.
Source: Item 23 — RECEIPT (FDD pages 59–205)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, a franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. This amendment to Item 17 of the FDD and sections of the Franchise Agreement clarifies a franchisee's right to pursue legal action in Maryland under the state's franchise laws.
This provision ensures that franchisees are not restricted from seeking legal recourse for violations of the Maryland Franchise Registration and Disclosure Law. It also states that any claims arising under this law must be brought within three years after the grant of the Franchise.
Furthermore, representations made in the Franchise Agreement will not act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. This protects the franchisee's rights and ensures that they cannot inadvertently forfeit their ability to bring a claim under Maryland law.
This modification provides added protection for Kidokinetics franchisees in Maryland, ensuring their rights under the Maryland Franchise Registration and Disclosure Law are preserved and enforceable within the specified time frame.