In Maryland, does the release required for transfer to a controlled entity by a Boulder Designs franchisee apply to liabilities under the Maryland Franchise Registration and Disclosure Law?

According to Boulder Designs's 2025 Franchise Disclosure Document, the general release required for a transfer to a controlled entity by a franchisee in Maryland does not apply to liabilities under the Maryland Franchise Registration and Disclosure Law. This means that even if a franchisee transfers their Boulder Designs franchise to a controlled entity (such as a company they own), the release they provide to Boulder Designs as part of that transfer will not protect them from any liabilities arising from violations of Maryland's franchise law.

This protection is significant for prospective Boulder Designs franchisees in Maryland. The Maryland Franchise Registration and Disclosure Law is designed to protect franchisees from unfair or deceptive practices by franchisors. By ensuring that the release does not apply to liabilities under this law, franchisees retain their right to pursue legal action against Boulder Designs if they believe the franchisor has violated the law. This could include claims related to misleading disclosures, unfair contract terms, or other violations of the statute.

This provision offers an additional layer of security for franchisees in Maryland, ensuring that they do not inadvertently waive their rights under the state's franchise law when transferring their franchise to a controlled entity. Boulder Designs franchisees should consult with a legal professional to fully understand their rights and obligations under the Maryland Franchise Registration and Disclosure Law.