In Maryland, does the general release required by Better Blend as a condition of renewal, sale, or assignment/transfer apply to liability under the Maryland Franchise Registration and Disclosure Law?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
The following is added to Item 17:
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.
Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise.
You have the right to file a lawsuit alleging a cause of action arising under the Maryland Franchise Law in any court of competent jurisdiction in the State of Maryland.
Source: Item 23 — RECEIPTS (FDD pages 43–157)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the general release that Better Blend requires as a condition of renewal, sale, or assignment/transfer of a franchise in Maryland 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 pursue claims against Better Blend under Maryland's franchise law.
This protection is specifically outlined in the Maryland addendum to the disclosure document. It ensures that franchisees in Maryland retain their legal rights and remedies under the state's franchise laws, regardless of any general release they may sign. This addendum aims to protect franchisees from inadvertently waiving their rights through broad release agreements.
For a prospective Better Blend franchisee in Maryland, this is a beneficial provision. It provides assurance that signing a general release for renewal, sale, or transfer purposes will not prevent them from pursuing legal action against Better Blend if they believe the franchisor has violated the Maryland Franchise Registration and Disclosure Law. Franchisees still need to bring any claims within 3 years after the grant of the franchise.