Does the general release required for renewal, sale, or assignment/transfer of a Carvel franchise apply to liability under the Maryland Franchise Registration and Disclosure Law?

According to Carvel's 2025 Franchise Disclosure Document, the general release required as a condition of renewal, sale, and/or assignment/transfer of a Carvel franchise 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 when renewing, selling, or transferring their franchise, they do not waive their rights to make claims against Carvel under Maryland's franchise laws. This protection is specifically included to comply with Maryland franchise regulations.

This provision ensures that Carvel franchisees in Maryland retain their legal rights and protections under the Maryland Franchise Registration and Disclosure Law, regardless of any general release they may sign. This is particularly important because general releases often contain broad language that could potentially waive various types of claims. By explicitly stating that the release does not apply to liabilities under Maryland franchise law, Carvel clarifies that franchisees' rights under that law are preserved.

Furthermore, the FDD states that all representations requiring prospective franchisees to assent to a release, estoppel, or waiver of liability are not intended to act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. This reinforces the protection afforded to franchisees under Maryland law, ensuring that they cannot inadvertently waive their rights through standard contractual language. Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise.