Under what condition will a release required for renewal or assignment/transfer for a Bft franchise not apply?

According to Bft's 2025 Franchise Disclosure Document, a release required as a condition of renewal and/or assignment/transfer of a franchise will not apply to claims arising under the Maryland Franchise Registration and Disclosure Law, according to COMAR 02.02.08.16L. This condition is specific to franchisees operating in Maryland. This information is part of a rider to the Bft Franchise SPV, LLC Multi-Unit Agreement. The rider is signed because the developer is a resident of Maryland, the studios developed under the agreement are or will be developed in Maryland, the offer to sell is made in Maryland, or the offer to buy is accepted in Maryland.

Additionally, any release required as a condition of renewal and/or assignment/transfer will not apply to the extent prohibited by the North Dakota Franchise Investment Law. This means that if North Dakota law prevents the enforcement of such a release, it will not be applicable to Bft franchisees in North Dakota.

These stipulations protect franchisees by ensuring that they do not unknowingly waive rights granted to them under state franchise laws during renewal or transfer processes. Prospective franchisees should consult with a legal professional to fully understand their rights and obligations under the franchise agreement and applicable state laws, especially concerning releases and waivers.