Do representations requiring a Boulder Designs franchisee to release liability act as a release of liability under the Maryland Franchise Registration and Disclosure Law?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
The following sentence is added to the end of Transfer by Franchisee to a Third Party, Section 18.2: The general release required as a condition of renewal, sale, and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
The following sentence is added to the end of Transfer to a Controlled Entity, Section 18.3: This release shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
The following sentence is added to the end of Consent to Jurisdiction, Section 23.2: A Franchisee in Maryland may sue in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
The following sentence is added at the end of Limitations of Claims, Section 23.4: Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise.
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 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Boulder Designs Franchise Disclosure Document, representations requiring prospective franchisees to release liability do not act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. This protection is specifically outlined to ensure that franchisees in Maryland retain their rights under Maryland franchise law, regardless of any general release clauses in the franchise agreement. This means that even if a franchisee signs a document that appears to release Boulder Designs from liability, that release will not be valid concerning claims arising under Maryland's franchise regulations.
This provision is crucial for prospective Boulder Designs franchisees in Maryland because it safeguards their ability to pursue legal action against the franchisor for violations of the Maryland Franchise Registration and Disclosure Law. These laws are designed to protect franchisees from unfair practices and misrepresentations by franchisors. By explicitly stating that release clauses do not apply to these laws, Boulder Designs ensures that franchisees can enforce their rights without fear of being barred by a contractual waiver.
Furthermore, the FDD includes additional stipulations to protect Maryland franchisees. For instance, a Maryland franchisee can sue in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, and any such claims must be brought within 3 years after the grant of the franchise. These provisions collectively reinforce the legal protections afforded to Boulder Designs franchisees operating in Maryland, ensuring they have recourse in case of disputes or violations of franchise law.