Regardless of the language in the Mr. Sandless Franchise Agreement, in which state is a franchisee permitted to enter into litigation with the Franchisor under Maryland Franchise Registration and Disclosure Law?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
However, pursuant to Section 14-216(c)(25) of the Maryland Franchise Registration and Disclosure Law, a franchisee is permitted to enter into litigation with the Franchisor in the State of Maryland, regardless of the language in the Franchise Agreement.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 30–34)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, a franchisee is permitted to enter into litigation with Mr. Sandless in the State of Maryland, regardless of what the Franchise Agreement states. This is specifically allowed under Section 14-216(c)(25) of the Maryland Franchise Registration and Disclosure Law.
This means that even if the franchise agreement contains clauses that might otherwise restrict a franchisee's ability to sue Mr. Sandless, the franchisee retains the right to litigate claims arising under Maryland franchise law within Maryland. This provision ensures that franchisees are not forced to waive their rights under Maryland law due to conflicting terms in the franchise agreement.
This protection extends to liabilities incurred under the Maryland Franchise Registration and Disclosure Law, ensuring that acknowledgements or representations made by the franchisee do not act as a release, estoppel, or waiver of such liabilities. Furthermore, any requirement for a general release as a condition of renewal, sale, or transfer of the franchise will not apply to liabilities under Maryland franchise law. The statute of limitations for bringing claims under Maryland Franchise Registration and Disclosure Law is three years after the grant of the franchise, and this cannot be reduced by any limitations in the franchise agreement.