Does the Bor Restoration General Release alter any terms of the Franchise Agreement?
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.
Based upon the franchisor's financial condition, the Maryland Securities Commissioner has required a financial assurance.
Therefore, all initial fees and payments owed by franchisees shall be deferred until the franchisor completes its pre-opening obligations under the franchise agreement. f.
To the extent this Addendum will be deemed to be inconsistent with any terms or conditions of said Franchise Agreement or exhibits or attachments thereto, the terms of this Addendum will govern. g.
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor.
This provision supersedes any other term of any document execute
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to the 2024 Bor Restoration Franchise Disclosure Document, the General Release typically does not alter the terms of the Franchise Agreement, except in specific cases such as in Maryland. The General Release is a separate agreement that franchisees and guarantors agree to as an inducement for Bor Restoration to approve certain actions or amendments to the Franchise Agreement. This release covers a broad range of claims related to the FDD, the franchise relationship, and the performance of both parties under the Franchise Agreement. However, the document explicitly states that the release is not intended to disclaim any representations made in the Franchise Disclosure Document itself.
In the state of Maryland, an addendum to the Franchise Agreement specifies that certain covenants, including the general release, do not apply to liability under the Maryland Franchise Registration and Disclosure Law. This addendum also allows franchisees to bring lawsuits in Maryland for claims under this law within three years of the franchise grant. Furthermore, any statements or acknowledgments signed by the franchisee cannot waive claims under state franchise law or disclaim reliance on statements made by Bor Restoration.
Therefore, while the General Release generally operates as a comprehensive waiver of claims, its effect can be limited by state-specific laws and addenda to the Franchise Agreement. Prospective Bor Restoration franchisees should carefully review the terms of the General Release and any applicable state addenda to understand their rights and obligations. Franchisees should also consult with a legal professional to fully understand the implications of signing such a release.