What is the purpose of the State Addendum for Mr. Sandless in Maryland?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
. This amends Article 24 of the Franchise Agreement.
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- Under Indiana Code 23-2-2.7-1 (10), franchisee may not agree to waive any claims or rights.
STATE ADDENDUM REQUIRED BY THE STATE OF MARYLAND
This will serve as the State Addendum for Mr. Sandless Franchise LLC for the State of Maryland for the Mr. Sandless Franchise Disclosure Document and for its Franchise Agreement. The amendments to the Franchise Agreement included in this addendum have been agreed to by the parties.
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- The provision contained in the termination sections of the Franchise Agreement may not be enforceable under federal bankruptcy law (11 U.S.C. Section 101 et seq.).
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- Item 11 of the Franchise Disclosure Document shall be amended to state that a franchisee may obtain an accounting of the advertising fund as required by COMAR 02.02.08.04B(2), by requesting same in a written request to Franchisor.
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- According to COMAR 02.02.08.16L, Item 17 of the Franchise Disclosure Document shall be amended at the sections dealing with the issuance of general releases to the effect that the general release required as a condition of renewal and/or assignment/transfer are not intended to nor shall they act as a release, estoppel or waiver of any liability under the Maryland Franchise Registration and Disclosure Law. The franchise agreement is amended to state that 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.
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- Section 14-226 of the Maryland Franchise Registration and Disclosure Law prohibits a franchisor from requiring a prospective franchisee to assent to any release, estoppel or waiver of liability as a condition of purchasing a franchise. Any disclaimer regarding the occurrence and/or acknowledgment of the non-occurrence of acts that would constitute a violation of the Franchise Law in order to purchase the franchise 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. The Franchisee Disclosure Acknowledgment Statement, Schedule F to the Franchise Agreement, is amended to comply with this provision.
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Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 30–34)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, the State of Maryland requires a specific addendum to the standard franchise agreement. This addendum serves to amend certain provisions of the agreement to ensure compliance with Maryland's franchise laws and regulations.
The Maryland addendum addresses several key areas. First, it clarifies that termination provisions within the franchise agreement may not be enforceable under federal bankruptcy law. Second, it amends Item 11 of the FDD to state that a franchisee can request an accounting of the advertising fund by submitting a written request to Mr. Sandless, as required by Maryland regulations. Third, it modifies Item 17 to ensure that any general release required for renewal or transfer does not waive liabilities under Maryland's franchise laws.
Additionally, the addendum ensures that franchisees in Maryland can litigate with Mr. Sandless within the state, regardless of any conflicting language in the franchise agreement. It also prevents acknowledgments or representations by the franchisee from acting as a waiver of rights under Maryland franchise law. Furthermore, the addendum stipulates that Mr. Sandless will defer collection of the initial franchise fee and other initial fees until it has fulfilled its pre-opening obligations, a requirement made by the Maryland Securities Commissioner based on Mr. Sandless's financial condition. These amendments collectively aim to protect the rights and interests of Mr. Sandless franchisees in Maryland and ensure compliance with state law.