What is the effect of a general release required as a condition of renewal for C12 Group franchises in Maryland?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
| THE UNDERSIGNED ("Franchisee"), effective as of | , 2 | , for good and valuable |
|---|---|---|
| consideration, the receipt and sufficiency of which are hereby acknowledged, on behalf of itself, its | ||
| successors, assigns, heirs, and affiliates, hereby forever and irrevocably releases The C12 Group, LLC | ||
| ("Franchisor"), its members, managers, officers, employees, and agents, and their respective successors, | ||
| assigns, heirs, and affiliates, from any and all | liabilities and obligations, known and unknown, contingent | |
| and non-contingent, and liquidated and non-liquidated, arising at any time with respect to that certain | ||
| Franchise Agreement between the undersigned and Franchisor dated onor | about | , |
| 2 | ||
| , as amended (the "Franchise | ||
| Agreement"). | ||
| The provisions hereof shall not apply to any liability arising with respect to the franchise laws under the | ||
| Maryland Franchise Registration and Disclosure Law. | ||
| This Release is inapplicable with respect to claims arising under the Washington Franchise Investment | ||
| Protection Act, RCW 19.100, and the rules adopted thereunder. | ||
| [Signature of Franchisee] |
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, a general release is required as part of the franchise agreement. However, the FDD explicitly states that the provisions of the general release do not apply to any liability arising with respect to the franchise laws under the Maryland Franchise Registration and Disclosure Law. This means that while a franchisee may be asked to sign a general release, this release does not waive their rights to make claims under Maryland franchise law.
This protection for franchisees in Maryland is significant. It ensures that C12 Group franchisees in Maryland retain their legal rights and protections under Maryland franchise law, regardless of any general release they may have signed. This prevents the franchisor from using the general release to shield itself from liability for violations of Maryland franchise law.
In practical terms, a C12 Group franchisee in Maryland can still pursue legal action against the franchisor for violations of the Maryland Franchise Registration and Disclosure Law, even if they have signed a general release. This provides an important safeguard for franchisees and helps to ensure fair dealing between franchisors and franchisees in Maryland.