What is the effect of a general release required as a condition of sale 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 C12 Group's 2025 Franchise Disclosure Document, a general release is required from the franchisee (and their owners, if applicable) as a condition for C12 Group's approval of a franchise transfer. However, this release does not apply to liabilities arising under the Maryland Franchise Registration and Disclosure Law. This means that while a franchisee must generally release C12 Group from most claims when transferring the franchise, they retain their rights to pursue claims related to franchise law violations in Maryland.
This protection ensures that franchisees in Maryland do not waive their rights under state franchise laws, even when signing a general release as part of a franchise transfer. This is particularly important because franchise laws are designed to protect franchisees from unfair practices by franchisors. The provision specifically carves out liabilities arising under the Maryland Franchise Registration and Disclosure Law from the general release, preserving the franchisee's ability to bring claims related to such violations.
For a prospective C12 Group franchisee in Maryland, this means that while they will likely need to sign a general release when selling or transferring their franchise, this release will not prevent them from pursuing legal claims against C12 Group if they believe the franchisor has violated the Maryland Franchise Registration and Disclosure Law. This provides an added layer of protection for franchisees in Maryland, ensuring they do not inadvertently waive their rights under state law when transferring their franchise.