Under what state's laws will the Release be interpreted for Bor Restoration?
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.
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, the standard release agreement may not fully apply to franchisees in Maryland. An addendum to the franchise agreement specifies several protections for Maryland franchisees regarding the release.
Specifically, the addendum states that the covenants within the general release do not apply to liabilities arising from the Maryland Franchise Registration and Disclosure Law. This means a Bor Restoration franchisee in Maryland retains their rights and protections under that specific Maryland law, regardless of what the standard release agreement says.
Furthermore, a Bor Restoration franchisee in Maryland can bring a lawsuit in Maryland for claims related to the Maryland Franchise Registration and Disclosure Law, and any such claim must be initiated within three years of the franchise grant. The FDD also clarifies that any attempts to enforce a release, estoppel, or waiver of liability will not be effective regarding any liability incurred under the Maryland Franchise Registration and Disclosure Law. This addendum ensures that Maryland franchisees maintain their legal rights under Maryland franchise law, despite any potentially conflicting terms in the standard franchise agreement or general release.