For Alloy franchises in Maryland, does the general release required as a condition of assignment/transfer apply to any liability under the Maryland Franchise Registration and Disclosure Law?

According to Alloy's 2025 Franchise Disclosure Document, the general release required as a condition of assignment or transfer for franchises in Maryland does not apply to any liability under the Maryland Franchise Registration and Disclosure Law. This protection is specifically outlined in an addendum to the franchise agreement for Maryland franchisees. This addendum modifies the standard franchise agreement to comply with Maryland statutes and regulations.

This means that if a franchisee in Maryland transfers or assigns their franchise, the general release they are required to sign will not prevent them from pursuing claims related to violations of the Maryland Franchise Registration and Disclosure Law. This law is designed to protect franchisees from deceptive or unfair practices by franchisors. The addendum ensures that franchisees retain their rights under this law, even after transferring their franchise.

This provision is beneficial for prospective Alloy franchisees in Maryland as it provides an additional layer of protection. It ensures that they do not inadvertently waive their rights under Maryland franchise law when transferring their franchise. This is particularly important because franchise agreements often contain broad release clauses that could potentially limit a franchisee's ability to pursue legal claims. The Maryland addendum specifically carves out an exception for claims arising under the Maryland Franchise Registration and Disclosure Law, safeguarding the franchisee's legal recourse.