Which item in the Pearce Bespoke FDD is amended by the information in this section?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
ADDENDUM TO THE FRANCHISE DISCLOSURE DOCUMENT REQUIRED BY THE STATE OF MARYLAND
The Office of Attorney General for the State of Maryland requires that certain provisions contained in franchise documents be amended to be consistent with Maryland Franchise Registration and Disclosure Law, Md. Code Ann., Bus. Reg. § 14-201 et seq., and of the Rules and Regulations promulgated under the Act (collectively the "Maryland Franchise Law"). To the extent that this Disclosure Document or Franchise Agreement contains provisions that are inconsistent with the following, such provisions are hereby amended:
- No requirement that you agree to any release, assignment, novation, estoppel or waiver of liability as a condition to your purchasing a Pearce Bespoke franchise shall act as a release, estoppel or waiver of any liability under the Maryland Franchise Law.
2. Item 17 is amended to state:
- (a) Any claims arising under the Maryland Franchise Law must be brought within three (3) years after the grant of the franchise.
- (b) Any general release required by the terms and conditions of the Franchise Agreement as a condition of renewal, assignment or transfer shall not apply to any liability under the Maryland Franchise Law.
- (c) Our right to terminate you upon your bankruptcy may not be enforceable under federal bankruptcy law (11 U.S.C. §101 et. seq.).
- (d) Nothing herein shall waive your right to file a lawsuit alleging a cause of action arising under the Maryland Franchise Law in any court of competent jurisdiction in the State of Maryland.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, the addendum required by the state of Maryland amends provisions contained in the franchise documents to align with Maryland Franchise Law. Specifically, Item 17 of the Pearce Bespoke FDD is amended regarding claims, releases, termination upon bankruptcy, and the right to file lawsuits under Maryland Franchise Law.
For a prospective Pearce Bespoke franchisee in Maryland, this means that certain standard clauses in the franchise agreement are modified to provide additional protections under Maryland law. These protections include the right to bring claims within three years of the franchise grant, assurance that general releases do not waive liability under Maryland Franchise Law, and a statement that termination upon bankruptcy may not be enforceable under federal law.
Furthermore, the amendment ensures the franchisee's right to file lawsuits in Maryland courts regarding causes of action arising under Maryland Franchise Law. This addendum clarifies the franchisee's rights and ensures compliance with Maryland's specific franchise regulations, which is a crucial consideration for anyone investing in a Pearce Bespoke franchise within the state.