For Bambu franchises in Maryland, does the general release required for renewal, sale, or assignment/transfer apply to liability under the Maryland Franchise Registration and Disclosure Law?

According to Bambu's 2025 Franchise Disclosure Document, the general release required as a condition of renewal, sale, and/or assignment/transfer for franchises in Maryland does 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 pursue claims under Maryland's franchise law. This protection is specifically outlined in the Maryland Rider to the Franchise Agreement.

This provision is beneficial for prospective Bambu franchisees in Maryland as it ensures that they retain their legal rights and protections under Maryland franchise law, even after signing a general release. This is particularly important during significant events such as renewal, sale, or transfer of the franchise, where releases are commonly required. The rider clarifies that these releases do not extend to liabilities arising from violations of the Maryland Franchise Registration and Disclosure Law.

In addition to the release, the FDD also states that any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise. Furthermore, all representations requiring prospective franchisees to assent to a release, estoppel, or waiver of liability are not intended to act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. This provides additional assurance that franchisees' rights under Maryland law are protected throughout the franchise relationship.