In Maryland, to what liability does a general release NOT apply regarding Bimbo Foods Bakeries Distribution?
Bimbo_Foods_Bakeries_Distribution Franchise · 2025 FDDAnswer from 2025 FDD Document
- Item 17, under the Summary column of parts (c) and (m), are amended to include the following paragraph:
The Code of Maryland Regulations states that a general release required as a condition of renewal, sale and/or assignment/transfer will not apply to any liability under the Maryland Franchise Registration and Disclosure Law. Accordingly, the general release required as a condition of renewal, sale and/or assignment/transfer will not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
Source: Item 14 — Other Accounts Payable and Accrued Liabilities (FDD pages 312–476)
What This Means (2025 FDD)
According to Bimbo Foods Bakeries Distribution's 2025 Franchise Disclosure Document, a general release required from franchisees in Maryland as a condition of renewal, sale, assignment, or transfer 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 still retain the right to pursue claims against Bimbo Foods Bakeries Distribution for violations of Maryland's franchise laws.
This protection ensures that franchisees in Maryland cannot be forced to waive their rights under state franchise law as a condition of renewing their agreement, selling their franchise, or transferring ownership. The Maryland Franchise Registration and Disclosure Law is designed to protect franchisees from unfair practices by franchisors, and this provision reinforces that protection.
For a prospective Bimbo Foods Bakeries Distribution franchisee in Maryland, this addendum provides an important safeguard. It means that even after signing a general release, the franchisee retains the ability to bring a claim against the franchisor if they believe the franchisor has violated the Maryland Franchise Registration and Disclosure Law. This could include claims related to misrepresentation, failure to disclose required information, or other violations of the law.