For Batteries Plus Bulbs franchises sold in Maryland, what law does the release exception pertain to?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
This Addendum relates to franchises sold in Maryland and is intended to comply with Maryland statutes and regulations. In consideration of the execution of the Franchise Agreement, Franchisor and Franchisee agree to amend the Franchise Agreement as follows:
-
- Release. Sections 3(B)(8) and 15(C)(7) of the Franchise Agreement are amended to provide that any release required as a condition of assignment or renewal without separate consideration may not apply to liability under the Maryland Franchise Registration and Disclosure Law (the "Maryland Franchise Law"). Specifically, Section 14-229(a)(3) of the Maryland Franchise Law, Business Regulation Article, Annotated Code of Maryland prohibits general releases by a franchisee in favor of the franchisor.
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 49–53)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs FDD, the release exception for franchises sold in Maryland pertains to the Maryland Franchise Registration and Disclosure Law. Specifically, Sections 3(B)(8) and 15(C)(7) of the Franchise Agreement are amended to ensure that any release required as a condition of assignment or renewal without separate consideration does not apply to liability under this law.
This addendum is intended to comply with Maryland statutes and regulations, highlighting the importance of adhering to state-specific franchise laws. Section 14-229(a)(3) of the Maryland Franchise Law, Business Regulation Article, Annotated Code of Maryland, explicitly prohibits general releases by a franchisee in favor of the franchisor. This provision ensures that franchisees retain their rights and protections under Maryland law, preventing them from inadvertently waiving claims against Batteries Plus Bulbs.
In practical terms, this means that a Batteries Plus Bulbs franchisee in Maryland cannot be forced to sign a blanket release that would prevent them from pursuing legal action against the franchisor under the Maryland Franchise Registration and Disclosure Law. This offers a level of protection to the franchisee, ensuring they are not disadvantaged during assignment or renewal processes. This is a notable benefit for prospective franchisees in Maryland, as it safeguards their legal rights within the franchise agreement.