What claims are excluded from the general release required for renewal or transfer of an Aplus franchise in Maryland?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
Any provisions requiring you to sign a general release of claims against us, including upon renewal, transfer or any amendment of the Franchise Agreement and Development Agreement, does not release any claim you may have under the Maryland Franchise Registration and Disclosure Law.
Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise.
You may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
Nothing in the General Release shall operate to release us from any liability under the Maryland Franchise Registration and Disclosure Law.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, for franchisees in Maryland, any general release of claims required for renewal or transfer of the franchise does not include claims arising under the Maryland Franchise Registration and Disclosure Law. This means that even if an Aplus franchisee signs a general release, they still retain the right to pursue claims against Aplus under Maryland's franchise law. This protection is explicitly stated in the state-specific addenda to the franchise agreement.
This provision ensures that Aplus franchisees in Maryland do not inadvertently waive their rights under state franchise law when signing a general release. The Maryland Franchise Registration and Disclosure Law provides certain protections to franchisees, and this clause preserves the franchisee's ability to assert those rights, even after signing a release for other potential claims. This addendum aims to comply with Maryland law, which prohibits waivers of liability under the state's franchise regulations.
Furthermore, the FDD clarifies that any section of the Franchise Agreement requiring a franchisee to assent to a release, estoppel, or waiver of liability as a condition of purchasing the franchise will not act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. This reinforces the protection for franchisees, ensuring that they cannot be compelled to forfeit their rights under Maryland franchise law as a condition of becoming an Aplus franchisee. Additionally, franchisees can bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
In summary, the Maryland addendum to the Aplus franchise agreement specifically carves out claims under the Maryland Franchise Registration and Disclosure Law from any general release required for renewal, transfer, or as a condition of purchasing the franchise. This ensures that franchisees in Maryland retain their rights and protections under state law, regardless of any general releases they may sign.