What is the specific 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 while a franchisee may be required to sign a general release to relinquish certain claims against Beauty Bungalows during renewal, sale, or transfer, this release will not cover any liabilities arising from violations of Maryland's franchise law.
This protection ensures that franchisees in Maryland retain their rights under the Maryland Franchise Registration and Disclosure Law, regardless of any general release they might sign. The FDD also specifies that franchisees can bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, provided the claims are brought within three years after the grant of the franchise.
Furthermore, any representations requiring prospective franchisees to assent 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 provision is designed to protect franchisees from inadvertently waiving their rights under Maryland law through standard agreements or questionnaires associated with the franchise relationship.