factual

Under what circumstances does a general release required for renewal, assignment, or transfer of a Caring Transitions franchise not apply?

Caring_Transitions Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. A general release required as a condition of renewal and/or assignment/transfer shall not apply to any claim or liability arising under the Maryland Franchise Registration and Disclosure Law.
    1. Any provision of the Franchise Agreement restricting jurisdiction or venue to a forum outside the State of Maryland or requiring the application of the laws of a state other than Maryland is void with respect to a claim otherwise enforceable under the Maryland Franchise Regulation and Disclosure Law.
    1. Section 16.6 is deleted in its entirety, and in its place is substituted the following:
    • "16.6. Statute of Limitations. Franchisor and Franchisee acknowledge that, pursuant to Section 227 of the Maryland Franchise Registration and Disclosure Law, any claims arising thereunder must be brought within three years after the grant of the Franchise."
    1. The general release required as a condition of sale shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
    1. No statement, questionnaire, or acknowledgement signed or agreed to by you in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by us, any franchise seller, or any other person acting on our behalf. This provision supersedes any other term of any document executed in connection with the franchise.

Notwithstanding the above, nothing contained herein shall act as a release, estoppel or waiver of any claim or liability arising under the Maryland Franchise Registration and Disclosure Law.

The general release required as a condition of renewal and/or assignment/transfer shall not apply to any liability under the Rhode Island Franchise Investment Act.

The release required as a condition of renewal and/or assignment/transfer, as stated in Item 17 (c) and Section 2.2(d), will not apply to any liability arising under the North Dakota Franchise Investment Law.

Minn. Rule 2860.4400(D) prohibits a franchisor from requiring a franchisee to assent to a general release. Any provision in the Franchise Agreement to the contrary is void.

Source: Item 22 — CONTRACTS (FDD page 49)

What This Means (2025 FDD)

According to Caring Transitions' 2025 Franchise Disclosure Document, a general release typically required for franchise renewal, assignment, or transfer does not apply in specific legal contexts, varying by state.

In Maryland, the general release does not apply to any claim or liability arising under the Maryland Franchise Registration and Disclosure Law. Furthermore, any franchise agreement provision that restricts jurisdiction or venue to a location outside of Maryland or mandates the application of laws from a state other than Maryland is considered void if the claim is otherwise enforceable under Maryland law.

Similarly, in Rhode Island and North Dakota, the general release required for renewal, assignment, or transfer does not apply to any liability arising under their respective Franchise Investment Acts. Minnesota prohibits franchisors from requiring franchisees to agree to a general release, rendering any conflicting provision in the Franchise Agreement void. These stipulations ensure that franchisees retain their rights and protections under state franchise laws, regardless of any general release agreements.

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.