Does the Bee Organized General Release apply to violations of federal franchise laws?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
No statement, questionnaire or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of: (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
Based on the 2025 Bee Organized Franchise Disclosure Document, the general release required as a condition of renewal, sale, and/or assignment/transfer does not apply to any liability under the Maryland Franchise Registration and Disclosure Law. This means that franchisees in Maryland retain their rights to pursue claims under Maryland franchise law, regardless of any general release they may have signed.
Additionally, the FDD states that no statement, questionnaire, or acknowledgement signed by a franchisee in connection with starting the franchise can waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Bee Organized. This provision overrides any other conflicting terms in any document related to the franchise agreement.
For prospective Bee Organized franchisees, particularly those in Maryland, this provides some protection against unknowingly waiving their rights under state franchise laws. However, the document does not explicitly address federal franchise laws, so it remains unclear whether the general release applies to violations of those laws. Franchisees should consult with an attorney to fully understand their rights and obligations under both state and federal laws.