Does the general release required as a condition of renewal, sale, and/or assignment/transfer for a Bonchon franchise apply to any liability under the Maryland Franchise Registration and Disclosure Law?

According to Bonchon's 2025 Franchise Disclosure Document, the general release required as a condition of renewal, sale, and/or assignment/transfer does not apply to any liability under the Maryland Franchise Registration and Disclosure Law. This protection is specifically outlined in the Maryland Addendum to the Disclosure Document, ensuring that franchisees in Maryland retain their rights under state franchise law. This addendum supersedes any conflicting information in the standard Franchise Disclosure Document or Franchise Agreement.

This provision is beneficial for prospective Bonchon franchisees in Maryland as it prevents them from unintentionally waiving their rights to pursue claims under Maryland's franchise laws when signing a general release during renewal, sale, or transfer of the franchise. The Maryland Addendum makes clear that these waivers and releases are not intended to act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law, and they will not apply to claims arising under these laws.

Furthermore, the FDD specifies that any claims arising under the Maryland Franchise Registration and Disclosure Laws must be brought within three years after the grant of the Franchise. This statute of limitations provides a defined timeframe for franchisees to take legal action if necessary. This protection ensures that Bonchon franchisees in Maryland are afforded specific rights and remedies under Maryland law, regardless of standard release agreements.