What is the relationship between the Maryland Franchise Registration and Disclosure Law and the general release required for renewal, sale, and/or assignment/transfer of a Beauty Bungalows franchise?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
Item 17 of the FDD and the Franchise Agreement are amended to state: "The general release required as a condition of renewal, sale, and/or assignment/transfer shall not apply to any liability under theMaryland Franchise Registration and Disclosure Law."
Item 17 of the FDD and sections of the Franchise Agreement and Area Development Agreement are amended to state that you may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the Franchise.
The Franchise Agreement and Franchise Disclosure Questionnaire are amended to state that all representationsrequiring 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 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, the general release required as a condition of renewal, sale, and/or assignment/transfer of a Beauty Bungalows franchise 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 bring claims under Maryland's franchise law.
This protection extends to lawsuits as well. The FDD states that franchisees 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.
Furthermore, any representations requiring prospective Beauty Bungalows 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. This ensures that franchisees cannot inadvertently waive their rights under Maryland law through standard agreements or questionnaires.