factual

Does the Maryland addendum for Canine Dimensions affect the franchisee's ability to assign or transfer the franchise?

Canine_Dimensions Franchise · 2025 FDD

Answer from 2025 FDD Document

ADDENDUM TO DISCLOSURE DOCUMENT AND AMENDMENT TO FRANCHISE AGREEMENT FOR THE STATE OF MARYLAND

This will serve as the State Addendum for the State of Maryland for Canine Dimensions Franchising, LLC and for its Franchise Agreement. This addendum amends the Disclosure Document and Franchise Agreement.

The provisions contained in Item 17 of the Disclosure Document and Article 14 of the Franchise Agreement regarding termination may not be enforceable under federal bankruptcy law (11 U.S.C.

Section 101 et seq.).

THIS MUTUAL GENERAL RELEASE AGREEMENT is made and entered into this day of, 20, by and between Canine Dimensions Franchising, LLC, a Florida limited liability company ("Canine Dimensions"), whose principal office Loop, Bonita Springs, Florida 34135 and is 23208 Sanabria , with an address at ("Franchisee"). A. Canine Dimensions and Franchisee entered into a Canine Dimensions Franchise Agreement (the "Franchise Agreement") dated, 20 granting Franchisee the right to operate a Canine Dimensions business using the confidential policies, procedures and techniques owned by Canine Dimensions Franchising, LLC, and using certain Marks, including the trademark and service mark Canine Dimensions. B. Franchisee desires to Transfer his/her its Canine Dimensions franchise / obtain a successor franchise (circle one).

C. Canine Dimensions, as permitted by the Franchise Agreement is conditioning its consent to such transfer or renewal on the execution of this Mutual General Release Agreement by Franchisee.

In consideration of the mutual covenants and conditions contained in this Mutual General Release and in the Franchise Agreement, and other good and valuable consideration, receipt of which is hereby acknowledged by each of the parties, the parties agree as follows:

    1. Canine Dimensions and Franchisee do hereby mutually release and forever discharge each other and each other's heirs, successors, representatives, assigns, agents, employees, officers, and directors ("Designees"), and each of them, of and from any claims, debts, liabilities, demands, obligations, costs, expenses, actions, and causes of action of every nature, character, and description known or unknown, vested or contingent, which each party now owns or holds, or has at any time heretofore owned or held, or may at any time own or hold against the other party hereto, arising prior to and including the date of this Mutual General Release Agreement; provided, however, that this release shall exclude claims arising from assertion of any continuing rights reserved in this Mutual General Release Agreement.
    1. This release shall not apply to any claims which the Franchisee may have arising under (a) the California Franchise Investment Law or the California Franchise Relations Act; (b) the Hawaii Franchise Investment Law; (c) the Maryland Franchise Registration and Disclosure Law; (d) the Minnesota Franchise Act; (e) the New York Franchise Investment Law; (f) the North Dakota Franchise Investment Law; or (g) the Washington Franchise Investment Protection Act, RCW 19.100, and the rules adopted thereunder. This release shall exclude claims arising from Franchisee's failure to pay any amounts due Canine Dimensions in the ordinary course of business. The parties expressly agree that this Mutual General Release Agreement will not apply to any claims Canine Dimensions may have under any Promissory Notes ancillary to the Franchise Agreement, or that pertain to other payment arrangements that the parties may have agreed upon.

Source: Item 22 — CONTRACTS (FDD page 36)

What This Means (2025 FDD)

According to Canine Dimensions' 2025 Franchise Disclosure Document, the Maryland addendum itself does not explicitly address the franchisee's ability to assign or transfer the franchise. However, the document includes a general release agreement that has an exception for claims arising under the Maryland Franchise Registration and Disclosure Law. This suggests that while the addendum doesn't directly discuss transfer rights, Maryland law may provide certain protections or rights related to franchise transfer that cannot be waived.

Specifically, the Mutual General Release Agreement states that the release does not apply to any claims which the Franchisee may have arising under the Maryland Franchise Registration and Disclosure Law. This means that if Maryland law provides franchisees with specific rights regarding the transfer of their franchise, these rights are preserved and cannot be waived through the general release agreement.

Therefore, while the Maryland addendum itself doesn't detail specific modifications to the standard franchise agreement regarding assignment or transfer, prospective Canine Dimensions franchisees in Maryland should carefully review the Maryland Franchise Registration and Disclosure Law to understand their rights and protections related to franchise transfers. They should also seek legal counsel to ensure full comprehension of how Maryland law interacts with the Canine Dimensions franchise agreement.

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.