table_specific

Which sections of the Bft Franchise Agreement are amended by the Releases provision in this rider?

Bft Franchise · 2025 FDD

Answer from 2025 FDD Document

| 3. | 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, the Releases provision in the rider amends specific sections of the Franchise Agreement, depending on whether the franchisee is in Maryland or New York. For franchisees in Maryland, the rider adds a clause to Section 9.B of the Multi-Unit Agreement, which concerns the transfer of interest by the Developer and its owners. This addition stipulates that any release required as a condition of renewal, assignment, or transfer will not apply to claims arising under the Maryland Franchise Registration and Disclosure Law, as per COMAR 02.02.08.16L.

For franchisees in New York, the rider adds a clause to Sections 3.2.C and 14.2 of the Franchise Agreement. Section 3.2.C pertains to successor franchises, while Section 14.2 outlines the conditions for approval of transfer. Similar to the Maryland provision, this addition ensures that any release required for renewal, assignment, or transfer does not apply to claims arising under the New York franchise laws.

In practical terms, these amendments protect Bft franchisees in Maryland and New York by ensuring that they do not waive their rights under state franchise laws when signing releases related to franchise renewal or transfer. This is particularly important because state franchise laws often provide franchisees with specific protections and remedies that might otherwise be compromised by a general release. Prospective franchisees should be aware of these state-specific provisions and consult with legal counsel to fully understand their rights and obligations.

Disclaimer: This information is extracted from the 2025 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.