For All County franchises in Maryland, what is the consequence of including a general release in the Franchise Agreement?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
ght within 3 years after the grant of the Franchise Agreement.
-
- 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 liability incurred under the Maryland Franchise Registration and Disclosure Law.
-
- Any general release required in the Franchise Agreement as a condition of renewal, sale, and/or assignment or transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
-
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, any general release required in the Franchise Agreement as a condition of renewal, sale, and/or assignment or transfer for franchises in Maryland will not apply to any liability under the Maryland Franchise Registration and Disclosure Law. This means that even if a franchisee signs a general release, they do not waive their rights to make claims under Maryland's franchise laws.
This protection is specifically designed to comply with Maryland statutes and regulations. The addendum to the Franchise Agreement explicitly states that it pertains to residents of Maryland and franchises located in Maryland. This ensures that franchisees operating in Maryland retain their legal rights and protections under state franchise law, regardless of any general release clauses in the agreement.
This provision is favorable for prospective All County franchisees in Maryland, as it prevents them from inadvertently waiving their rights under the Maryland Franchise Registration and Disclosure Law through a general release. It allows franchisees to pursue legal claims related to franchise registration and disclosure issues, even if they have signed a general release as part of the renewal, sale, assignment, or transfer process. This offers an additional layer of protection for franchisees in Maryland, ensuring they can address potential violations of state franchise law.