What happens if a provision of the Spray Net Assignment is held invalid?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
SPRAY-NET INC. MARYLAND ADDENDUM TO THE FRANCHISE AGREEMENT
Under COMAR 02-02-08-16L, the general release required as a condition of renewal, sale, and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Law.
Any provision of the Agreement which provides for a period of limitations for causes of action shall not apply to causes of action under the Maryland Franchise Law, Business Regulation Article, §14-227, Annotated Code of Maryland. Franchisee must bring an action under such law within three years after the grant of the franchise.
Notwithstanding any provision of the Agreement to the contrary, Franchisee does not waive its 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.
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.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
Based on the 2025 Spray Net Franchise Disclosure Document, the Maryland Addendum to the Franchise Agreement addresses the scenario where a provision of the agreement is deemed invalid. Specifically, it states that any provision in the agreement that sets a time limit for filing a lawsuit does not apply to actions brought under Maryland Franchise Law. Franchisees in Maryland have three years from the date they are granted the franchise to file a lawsuit under this law, regardless of what the standard agreement says.
This addendum also clarifies that franchisees in Maryland do not waive their right to sue Spray Net under the Maryland Franchise Law, even if the standard agreement suggests otherwise. Furthermore, any statements or requirements for franchisees to release, waive, or be stopped from claiming liability do not apply to liability under the Maryland Franchise Registration and Disclosure Law.
For a prospective Spray Net franchisee in Maryland, this means that certain protections are in place under Maryland law that override the standard franchise agreement. These protections ensure that franchisees retain their rights to take legal action within the specified timeframe and are not bound by clauses that might limit their ability to seek legal recourse under Maryland franchise law.