What is the geographic limit of the Maryland Addendum's applicability to the Punch King Fitness Franchise Agreement?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise.
MARYLAND ADDENDUM TO FRANCHISE AGREEMENT AND AREA DEVELOPMENT AGREEMENT
The Franchise Agreement and Area Development Agreement to which this addendum is attached are amended as follows to comply with the Maryland Franchise Registration and Disclosure Law:
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- A franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
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- This franchise agreement provides that disputes are resolved through arbitration. A Maryland franchise regulation states that it is an unfair or deceptive practice to require a franchisee to waive its right to file a lawsuit in Maryland claiming a violation of the Maryland Franchise Law. In light of the Federal Arbitration Act, there is some dispute as to whether this forum selection requirement is legally enforceable.
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- Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise.
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- All representations requiring prospective franchisees to assent to a release, estoppel, or waiver of liability 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.
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- Each provision of this Addendum is effective only to the extent that the jurisdictional requirements of the Maryland Franchise Registration and Disclosure Law are met independently of this addendum. To the extent, this addendum is inconsistent with any term or condition of the Franchise Agreement or its exhibits or attachments, the terms of this Addendum control. Franchisor and Franchisee hereby ratify and affirm the Franchise Agreement in all other respects.
Source: Item 22 — CONTRACTS (FDD pages 56–215)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, the Maryland Addendum specifically applies to franchisees operating within Maryland. The addendum ensures that franchisees can bring lawsuits in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. This means that the protections and amendments outlined in the addendum are designed to address legal requirements and franchise regulations specific to the state of Maryland.
Several provisions within the Maryland Addendum reinforce its focus on Maryland law. For instance, it clarifies that representations requiring franchisees to waive liability do not apply to liabilities incurred under the Maryland Franchise Registration and Disclosure Law. Additionally, any claims arising under this law must be brought within three years after the franchise is granted. These stipulations ensure that Maryland franchisees have specific legal recourse and protections under state law.
The addendum also addresses potential conflicts between the franchise agreement and Maryland law. It states that the provisions of the addendum are effective only to the extent that the jurisdictional requirements of the Maryland Franchise Registration and Disclosure Law are met independently. If any term in the franchise agreement is inconsistent with the addendum, the terms of the addendum will take precedence, further emphasizing the addendum's role in ensuring compliance with Maryland law for Punch King Fitness franchises operating in that state.