Are there any exceptions to the claims released under Section 1 of the Body20 General Release?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
The general release required as a condition of renewal, sale and/or assignment/transfer will not apply to any liability arising under the Maryland Franchise Registration and Disclosure Law.
- RELEASES. The following is added to the end of Sections 2.2(d), 4.3, 4.5, 13.4(d), 13.5, 13.6, and 15.7(d) of the Franchise Agreement:
Notwithstanding the foregoing, all rights enjoyed by you and any causes of action arising in your favor from the provisions of Article 33 of the General Business Law of the State of New York and the regulations issued thereunder shall remain in force to the extent required by the non-waiver provisions of GBL Sections 687.4 and 687.5, as amended.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, there are exceptions to the general release required as a condition of renewal, sale, and/or assignment/transfer. Specifically, the release does not apply to any liability arising under the Maryland Franchise Registration and Disclosure Law. This means that franchisees in Maryland retain their rights and protections under Maryland franchise law, even when signing a general release for other matters.
Additionally, for franchisees in New York, the release does not waive rights or causes of action arising from the provisions of Article 33 of the General Business Law of the State of New York and its regulations, as required by the non-waiver provisions of GBL Sections 687.4 and 687.5. This ensures that New York franchisees maintain their statutory rights under New York franchise law, despite any general release they might sign.
For prospective Body20 franchisees, these exceptions are crucial. They ensure that franchisees in Maryland and New York do not inadvertently waive their rights under state franchise laws when signing a general release. This can be particularly important in situations involving disputes, terminations, or transfers, where the franchisee needs to rely on the protections afforded by their state's franchise laws. Franchisees should consult with legal counsel to fully understand their rights and the implications of any release they are asked to sign.