What section of the Bft Multi-Unit Agreement regarding transfer of interest is modified by this Rider?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Release. The following is added to the end of Section 9.B (Transfer of Interest - By Developer and its Owners) of the Multi-Unit Agreement: Pursuant to COMAR 02.02.08.16L, any release required as a condition of renewal and/or assignment/transfer will not apply to claims arising under the Maryland Franchise Registration and Disclosure Law.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, specifically the Rider to the Multi-Unit Agreement for use in Maryland, Section 9.B of the Multi-Unit Agreement, titled "Transfer of Interest - By Developer and its Owners," is modified. This modification is related to releases required as a condition of renewal and/or assignment/transfer.
The Rider stipulates that any release required as a condition of renewal or transfer will not apply to claims arising under the Maryland Franchise Registration and Disclosure Law, as per COMAR 02.02.08.16L. This means that Bft franchisees in Maryland retain their rights to pursue claims under Maryland franchise law, even if they sign a general release as part of a renewal or transfer.
This modification provides an added layer of protection for Bft franchisees in Maryland, ensuring that they do not inadvertently waive their rights under state franchise law when renewing their agreement or transferring their interest in the franchise. This is particularly important because franchise laws are designed to protect franchisees from potentially unfair practices by franchisors. Franchisees should consult with a legal professional to fully understand the implications of this rider.