Does the general release required for renewal, sale, or assignment/transfer of a Beard Papas franchise apply to liability under the Maryland Franchise Registration and Disclosure Law?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
Amendments to the Beard Papa's Franchise Disclosure Document
Item 17, "Renewal, Termination, Transfer and Dispute Resolution," is supplemented, by the addition of the following:
- A. The general release required as a condition of renewal, sale, and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
- B. A Franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
- C. Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise.
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to the 2025 Beard Papas Franchise Disclosure Document, the general release required as a condition of renewal, sale, and/or assignment/transfer of a Beard Papas franchise does not apply to any liability under the Maryland Franchise Registration and Disclosure Law. This means that franchisees in Maryland are not required to waive their rights to pursue claims under this law as a condition of renewing their franchise agreement or transferring ownership. This protection is specifically outlined in the Maryland FDD Amendment.
This provision ensures that Beard Papas franchisees in Maryland retain their legal rights and protections under the Maryland Franchise Registration and Disclosure Law, even when renewing, selling, or transferring their franchise. This is a significant benefit for franchisees as it prevents them from inadvertently relinquishing their rights in exchange for the ability to renew or transfer their business.
Furthermore, the FDD states that a Beard Papas franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. However, any such claims must be brought within three years after the grant of the franchise. This clarification reinforces the franchisee's right to seek legal recourse within a defined timeframe, ensuring that the franchisee has the ability to address any violations of the Maryland Franchise Registration and Disclosure Law.