Does the Bor Restoration General Release impact the transferability of the franchise?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
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.
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to the 2024 Bor Restoration Franchise Disclosure Document, the franchise agreement requires franchisees to sign a general release as a condition of renewal, sale, termination, and franchise transfer. This means that before a Bor Restoration franchisee can transfer their franchise to a new owner, they must sign a general release.
The General Release covers all known or unknown claims related to how the FDD was delivered, the content (or lack thereof) in the FDD, the performance of Bor Restoration, any promises made, and any other claims related to the franchise agreement. By signing this release, the franchisee agrees to release, indemnify, and forever discharge Bor Restoration from any potential claims.
However, the addendum for the state of Maryland specifies that these covenants do not apply to any liability under the Maryland Franchise Registration and Disclosure Law. This means that even if a Bor Restoration franchisee in Maryland signs a general release, they do not waive their rights to bring a lawsuit under the Maryland Franchise Registration and Disclosure Law. This addendum also states that any claims under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise.