Where can litigation between a franchisee and Monicals Pizza be instituted for claims arising under the Maryland Franchise Registration and Disclosure Law?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
ITEM 17 of the Disclosure Document is amended to add the following:
- Under the Maryland Franchise Registrations and Disclosure Law, Md. Code Ann. Bus. Reg. §14-201 et seq., no general release shall be required as a condition of renewal, termination and/or transfer that is intended to exclude claims under the Maryland Franchise Registration and Disclosure Law.
- Any litigation between Franchisee and Franchisor may be instituted in any court of competent jurisdiction, including a court in the State of 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 3 years after the grant of the franchise.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to the 2025 FDD, litigation between a Monicals Pizza franchisee and Monicals Pizza Corporation for claims arising under the Maryland Franchise Registration and Disclosure Law may be instituted in any court of competent jurisdiction. This explicitly includes the option of instituting such litigation in a court within the State of Maryland. This provision ensures that franchisees operating in Maryland have the legal recourse to pursue claims related to franchise registration and disclosure within their own state's legal system.
This stipulation is particularly relevant because the Franchise Agreement typically requires that it be governed by the laws of Illinois and that litigation or arbitration be conducted in Illinois. However, the addendum clarifies that the requirement to litigate or arbitrate in Illinois does not limit any rights a franchisee may have under the Maryland Franchise Registration and Disclosure Law to bring suit in the State of Maryland. This multi-state addendum modifies the standard agreement to comply with Maryland law, which seeks to protect franchisees' rights within the state.
Furthermore, any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise. This time limit is crucial for franchisees to be aware of, as it sets a deadline for pursuing legal action related to franchise registration and disclosure issues. The inclusion of these specific stipulations for Maryland franchisees reflects a commitment to adhering to state-specific franchise laws and ensuring that franchisees are not inadvertently waiving their rights under those laws.