factual

Is a Better Blend franchisee required to execute a general release of claims as a condition of renewal?

Better_Blend Franchise · 2024 FDD

Answer from 2024 FDD Document

All representations requiring prospective Releases, Estoppels and Waivers of Liability. 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 general release required as a condition of renewal shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.

Source: Item 22 — CONTRACTS (FDD page 43)

What This Means (2024 FDD)

According to the 2024 Better Blend Franchise Disclosure Document, whether a franchisee is required to execute a general release of claims as a condition of renewal depends on the state in which the franchise operates. Specifically, the Maryland Rider to the Franchise Agreement addresses this issue.

The Maryland Rider states that any representations requiring prospective franchisees to agree to a release, estoppel, or waiver of liability do not act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. Furthermore, the general release required as a condition of renewal does not apply to any liability under the Maryland Franchise Registration and Disclosure Law. This provision protects franchisees in Maryland from waiving their rights under Maryland franchise law.

For prospective Better Blend franchisees, this means that if you are opening a franchise in Maryland, you will not be required to sign a general release that waives your rights under Maryland franchise law as a condition of renewal. Franchisees in other states may be subject to different requirements, so it is important to review the specific rider or franchise agreement for your state and consult with an attorney to understand your rights and obligations.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.