What is the relevant Maryland law governing franchise registration and disclosure that affects Pearce Bespoke?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the Maryland Franchise Registration and Disclosure Law, specifically Md. Code Ann., Bus. Reg. § 14-201 et seq., and its associated Rules and Regulations, impacts franchise operations in Maryland.
This law necessitates amendments to certain provisions within Pearce Bespoke's franchise documents to ensure compliance. These amendments address critical aspects such as waivers of liability, the statute of limitations for claims, and the franchisee's right to file lawsuits within Maryland courts. Specifically, any requirement for a franchisee to release liability under Maryland Franchise Law as a condition of purchasing a Pearce Bespoke franchise is invalid.
Moreover, the FDD stipulates that claims arising under Maryland Franchise Law must be initiated within three years of the franchise grant. The documents also clarify that bankruptcy termination rights may not be enforceable under federal law. These stipulations collectively aim to protect the rights of Pearce Bespoke franchisees in Maryland and ensure adherence to state-specific regulations.
Prospective Pearce Bespoke franchisees in Maryland should carefully review these amendments and understand their rights under the Maryland Franchise Registration and Disclosure Law. They should also be aware that the registration of the franchise with the Maryland Securities Division does not constitute an endorsement or recommendation by the Securities Commissioner.