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For Camp Margaritaville franchises in Maryland, does the general release required by the Franchise Agreement apply to liability under the Maryland Franchise Registration and Disclosure Law?

Camp_Margaritaville Franchise · 2025 FDD

Answer from 2025 FDD Document

Pursuant to COMAR 02.02.08.16L, the general release required as a condition of renewal, sale, and/or assignment or transfer will not apply to any liability under the Maryland Franchise Registration and Disclosure Law.

Item 17 is amended by adding the following language after the table:

You may sue in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise.

Source: Item 23 — RECEIPTS (FDD pages 72–406)

What This Means (2025 FDD)

According to Camp Margaritaville's 2025 Franchise Disclosure Document, the general release required as a condition of renewal, sale, and/or assignment or transfer for franchises in Maryland will not apply to any liability under the Maryland Franchise Registration and Disclosure Law. This is explicitly stated in an addendum to Item 17 of the FDD, which addresses the terms and conditions of the franchise agreement.

This provision protects Camp Margaritaville franchisees in Maryland from unknowingly waiving their rights under Maryland franchise law when signing a general release. General releases are often required during franchise renewal, sale, or transfer, and without this specific stipulation, franchisees might inadvertently relinquish their legal protections under the Maryland Franchise Registration and Disclosure Law. This ensures that franchisees retain their ability to pursue claims related to violations of this law, regardless of any general release they may have signed.

Furthermore, the FDD specifies that franchisees may sue in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. Any such claims must be brought within 3 years after the grant of the franchise. This clarification reinforces the franchisee's right to legal recourse within the state and sets a clear timeframe for pursuing these claims.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.