Does the requirement for litigation or arbitration to be conducted in Illinois limit a Monicals Pizza franchisee's right to bring suit in Maryland 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.
- In the event of a conflict of laws to the extent required by the Maryland Franchise Registration and Disclosure Law, Maryland law shall prevail.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, the standard requirement for litigation or arbitration to be conducted in Illinois does not limit a franchisee's right to bring suit in Maryland under the Maryland Franchise Registration and Disclosure Law. Specifically, for franchisees in Maryland, the FDD includes an addendum that modifies the standard agreement. This addendum explicitly states that any litigation between a Monicals Pizza developer (franchisee) and the franchisor may be initiated in any court with jurisdiction, including a court within the State of Maryland, for claims arising under the Maryland Franchise Registration and Disclosure Law. This ensures that Maryland franchisees have the option to pursue legal claims related to their franchise agreement within their own state.
Furthermore, the addendum for Maryland franchisees specifies that any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the franchise is granted. This provision sets a clear statute of limitations for legal actions related to the franchise agreement under Maryland law. In the event of any conflict of laws, the Maryland Franchise Registration and Disclosure Law will take precedence, as required by the law itself. This ensures that the rights and protections provided by Maryland law are upheld for Monicals Pizza franchisees operating in that state.
This modification to the standard franchise agreement is a crucial protection for Monicals Pizza franchisees in Maryland. It ensures that they are not forced to litigate disputes in Illinois, which could be more costly and inconvenient. The ability to bring claims in Maryland, coupled with the precedence of Maryland law in case of conflicts, provides a more equitable legal framework for franchisees operating within the state. Prospective franchisees in Maryland should carefully review this addendum to fully understand their rights and obligations under the franchise agreement.