In Maryland, what is the effect of representations requiring prospective Bb.Q Chicken franchisees to assent to a release of liability under the Maryland Franchise Registration and Disclosure Law?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Agreement and Multi-Unit Operator Agreement are amended to include the following statement: "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 any liability incurred under the Maryland Franchise Registration and Disclosure Law."
The Franchisee Acknowledgment Statement (Exhibit J to the Franchise Disclosure Document) is amended to state that 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 any liability incurred under the Maryland Franchise Registration and Disclosure Law.
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, in Maryland, any representations that require prospective franchisees to agree to a release, estoppel, or waiver of liability will not act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. This protection is explicitly extended to the Franchisee Acknowledgment Statement, ensuring that franchisees in Maryland cannot inadvertently waive their rights under Maryland franchise law through standard acknowledgments or representations made during the franchise commencement. This amendment is included to ensure compliance with Maryland law and protect the franchisee's rights.
This provision means that Bb.Q Chicken franchisees in Maryland retain their rights and protections under the Maryland Franchise Registration and Disclosure Law, regardless of any general releases or waivers they might sign as part of the franchising process. This addendum ensures that franchisees can still pursue claims under Maryland franchise law if they believe their rights have been violated, even if they have signed documents that appear to waive those rights. This is a significant benefit for franchisees, as it prevents them from unknowingly giving up their legal recourse.
Furthermore, the Bb.Q Chicken FDD includes an addendum specific to Maryland, which amends the Franchise Agreement and Multi-Unit Operator Agreement to align with Maryland law. This addendum explicitly states that the general release required as a condition of renewal, sale, or transfer does not apply to any liability under the Maryland Franchise Registration and Disclosure Law. It also clarifies that a franchisee can bring a lawsuit in Maryland for claims arising under this law, and any such claims must be brought within three years after the grant of the franchise. These amendments reinforce the protection of franchisee rights and ensure compliance with Maryland's franchise regulations.