Does the Maryland addendum to the Pearce Bespoke FDD amend the franchise documents?
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.
THE REGISTRATION OF THIS FRANCHISE DISCLOSURE DOCUMENT WITH MARYLAND SECURITIES DIVISION OF THE OFFICE OF ATTORNEY GENERAL DOES NOT CONSTITUTE APPROVAL, RECOMMENDATION, OR ENDORSEMENT BY THE SECURITIES COMMISSIONER.
AMENDMENT TO THE PEARCE BESPOKE FRANCHISE AGREEMENT REQUIRED BY THE STATE OF MARYLAND
In recognition of the requirements of the Maryland Franchise Registration and Disclosure Law, Md. Code Ann., Bus. Reg. § 14-201 et seq., and of the Rules and Regulations promulgated thereunder, the parties to the attached Pearce Bespoke Franchise Agreement (the "Franchise Agreement") agree as follows:
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke FDD, the Maryland addendum does amend the franchise documents. The addendum explicitly states that the Office of Attorney General for the State of Maryland requires certain provisions in the franchise documents to be amended to comply with Maryland Franchise Law.
Specifically, the addendum modifies provisions related to releases, assignments, novation, estoppel, or waiver of liability, ensuring they do not act as a release, estoppel, or waiver of liability under Maryland Franchise Law. Item 17 of the franchise agreement is also amended, addressing claims arising under Maryland Franchise Law, general releases, termination upon bankruptcy, and the right to file lawsuits in Maryland courts.
Furthermore, the FDD includes an amendment to the Pearce Bespoke Area Development Agreement required by the State of Maryland, reinforcing the necessity to comply with Maryland Franchise Registration and Disclosure Law. The document also states that any inconsistencies with the Maryland Franchise Registration and Disclosure Law in the Disclosure Document or the Franchise Agreement are deleted, and the Franchise Agreement is further amended to include statements about termination upon bankruptcy and the right to file lawsuits in Maryland.