What is the exception to the rule about unsatisfied judgments against a Bor Restoration franchisee?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
STATE OF MARYLAND This Addendum to the Franchise Agreement, agreed to this day of, 20, between BOR Franchising, LLC and , amends and revises said Franchise Agreement as follows: a.
The Franchise Agreement requires Franchisee to sign a general release as a condition of renewal, sale, termination, and franchise transfer.
These covenants shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law. b.
A franchisee may bring a lawsuit in Maryland for claims under the Maryland Franchise Registration and Disclosure Law. c.
Any claim under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise. d.
All 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 Registration and Disclosure Law. e.
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to the 2024 Bor Restoration Franchise Disclosure Document, the standard requirement for franchisees to sign a general release as a condition of renewal, sale, termination, and franchise transfer does not apply to liabilities under the Maryland Franchise Registration and Disclosure Law. This means that even if a franchisee signs a general release, they do not waive their rights to pursue claims against Bor Restoration under this specific Maryland law.
This provision is particularly relevant for prospective Bor Restoration franchisees in Maryland. It ensures that franchisees retain their legal rights and protections under Maryland franchise law, regardless of any general releases they may sign. This protection covers potential liabilities arising from violations of the Maryland Franchise Registration and Disclosure Law, offering an additional layer of security for franchisees operating in that state.
Furthermore, the FDD clarifies that franchisees in Maryland have the right to bring lawsuits under the Maryland Franchise Registration and Disclosure Law, provided that such claims are initiated within three years after the franchise is granted. This timeframe sets a clear deadline for franchisees to take legal action, ensuring that claims are addressed in a timely manner. This addendum specifically applies to franchisees in Maryland, highlighting the importance of understanding state-specific regulations when investing in a Bor Restoration franchise.