Does the general release required for renewal, sale, or assignment/transfer of a C12 Group franchise in Maryland apply to liabilities under the Maryland Franchise Registration and Disclosure Law?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
With regard to Item 17, the following is added:
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- Any claims arising under the Maryland Franchise Registration and Disclosure law must be brought within three (3) years after the grant of the franchise.
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- 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.
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- The provision in the Franchise Agreement which provides for termination upon bankruptcy of the franchisee may not be enforceable under federal bankruptcy law (11 U.S.C. Section 101 et seq.).
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- A franchisee may bring a lawsuit in Maryland for claims arising under Maryland Franchise Registration and Disclosure Law.
Source: Item 23 — RECEIPTS (FDD pages 46–137)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, the general release required as a condition of renewal, sale, and/or assignment/transfer of a C12 Group franchise in Maryland does not apply to any liability under the Maryland Franchise Registration and Disclosure Law. This means that even if a franchisee signs a general release, they still retain their rights to pursue claims under this specific law.
This protection is significant for prospective C12 Group franchisees in Maryland because it ensures that they do not inadvertently waive their rights to legal recourse under the Maryland Franchise Registration and Disclosure Law when renewing, selling, or transferring their franchise. This law is designed to protect franchisees, and this provision prevents C12 Group from circumventing those protections through a general release.
Furthermore, the FDD states that any claims arising under the Maryland Franchise Registration and Disclosure law must be brought within three years after the grant of the franchise. Additionally, a franchisee may bring a lawsuit in Maryland for claims arising under Maryland Franchise Registration and Disclosure Law. These stipulations provide further clarity and protection for franchisees operating in Maryland, ensuring they have a defined timeframe and the right to seek legal remedies within the state.