Does the expiration or termination of the Beyond Juicery Eatery agreement release any party from accrued liabilities?
Beyond_Juicery_Eatery Franchise · 2025 FDDAnswer from 2025 FDD Document
ITNESS WHEREOF, each of the undersigned hereby acknowledges having read this Addendum,
FOR THE STATE OF MARYLAND
The BEYOND JUICERY + EATERY FRANCHISING, LLC Franchise Agreement between _________________ ("Franchisee" or "You") and BEYOND JUICERY + EATERY FRANCHISING, LLC, a Michigan Corporation ("Franchisor," "we" or "us") dated ***Franchise Agreement Date*** (the "Agreement") shall be amended by the addition of the following language, which shall be considered an integral part of the Agreement (the "Amendment"):
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- In recognition of the requirements of the Maryland Franchise Registration and Disclosure Law, Md Code Ann, Bus Reg §§14-201-14-233, the Franchise Agreement for BEYOND JUICERY + EATERY FRANCHISING, LLC is amended as follows:
- Sections 13.02 and 16.09 require you to sign a general release as a condition of renewal or transfer of the Franchise. Such release shall exclude claims arising under the Maryland Franchise Registration and Disclosure Law.
- Section 15.01, which terminates the Franchise Agreement upon your bankruptcy, may not be enforceable under federal bankruptcy law (11 USC Section 101, et. seq).
- Section 23.02 require litigation or arbitration to be conducted in the State of our principal place of business;
Source: Item 23 — RECEIPTS (FDD pages 60–337)
What This Means (2025 FDD)
Based on the 2025 Beyond Juicery Eatery FDD, the franchise agreement includes provisions regarding releases in specific situations like renewal or transfer, but these releases generally exclude claims arising from franchise laws. For instance, in Maryland and New York, the agreement stipulates that any required general release as a condition of renewal or transfer will not waive rights under their respective franchise laws. Similarly, in Washington, any release required for renewal or transfer excludes claims under the Washington Franchise Investment Protection Act.
However, the FDD doesn't explicitly state whether the general expiration or termination of the agreement releases either party from accrued liabilities. Instead, it focuses on specific scenarios and protections under state laws. This suggests that the standard agreement might contain clauses that could be interpreted as releases, but these are limited by state franchise laws to protect the franchisee's rights.
Therefore, a prospective Beyond Juicery Eatery franchisee should carefully review the franchise agreement and consult with legal counsel to understand the full scope of liability releases upon termination or expiration, particularly in their specific state. It is important to determine what liabilities, if any, remain after the agreement ends and how state laws might affect those provisions.