In Maryland, can a Learningrx franchisee bring a lawsuit for claims arising under the Maryland Franchise Registration and Disclosure Law?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
Item 17(m) of the Franchise Disclosure Document, Section 14.04(b) of the Franchise Agreement and Section 7.03 of the Area Developer Agreement are amended to state that the general release required as a condition of sale and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
Item 17(u)(v)(w) of the Franchise Disclosure Document, Sections 16.03 and 16.07 of the Franchise Agreement and Sections 10.01 & 10.02 of the Area Developer Agreement are amended to state; A franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
Item 17(u) of the Franchise Disclosure Document, Section 16 of the Franchise Agreement and Section 10.01 of the Area Developer Agreement are amended to state: Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise.
Section 19 and Attachment VII of the Franchise Agreement and Section 14 of the Area Developer Agreement are amended to state: All representations requiring prospective franchisees to assent to a release, estoppels 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 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, a franchisee in Maryland can bring a lawsuit for claims arising under the Maryland Franchise Registration and Disclosure Law. This amendment to the franchise agreement clarifies a franchisee's right to pursue legal action under Maryland's franchise laws.
The FDD also specifies that any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise. This statute of limitations sets a clear timeframe for franchisees to take legal action, ensuring that claims are addressed in a timely manner.
Furthermore, the document states that all representations requiring prospective franchisees to assent to a release, estoppels, or waiver of liability do not act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. This provision protects the franchisee's rights by preventing Learningrx from using standard contract language to circumvent Maryland's franchise regulations.