Does the Bombs Away General Release apply to liability under the Maryland Franchise Registration and Disclosure Law?

According to the 2024 Bombs Away FDD, the General Release does not apply to liability under the Maryland Franchise Registration and Disclosure Law. The FDD includes a specific statement within the Form of General Release that explicitly excludes its application to any liability arising from the Maryland Franchise Registration and Disclosure Law. This means that while a franchisee may be required to sign a general release under certain circumstances, such as a franchise renewal or the sale of the franchise, this release will not waive any rights or claims the franchisee may have under Maryland's franchise law.

This exclusion is further reinforced by the Maryland Rider to the Franchise Agreement, which states that representations requiring prospective franchisees to assent to a release, estoppel, or waiver of liability are not intended to, nor shall they act as, a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Law. This provision ensures that franchisees in Maryland retain their legal rights and protections under state franchise law, regardless of any general releases they may sign.

For a prospective Bombs Away franchisee in Maryland, this is a significant protection. It means that even if they sign a general release, they still have the right to pursue claims against Bombs Away for violations of the Maryland Franchise Registration and Disclosure Law. This could include claims related to misleading disclosures, unfair practices, or other violations of state franchise law. Franchisees should consult with an attorney to fully understand their rights and protections under Maryland law.