Does the general release from claims apply to transactions governed by the Maryland Franchise Registration and Disclosure Law for Checkers?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
The release provided above will not apply to the extent prohibited by the Maryland Franchise Registration and Disclosure Law. Subject to your arbitration obligation under the Franchise Agreement, you may commence a lawsuit against us in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
Any general releases you sign will not apply to the extent prohibited by the Maryland Franchise Registration and Disclosure Law. (See Exhibit K to the Franchise Disclosure Document for the form of general release that we currently intend to use in connection with franchise transfers and renewals.)
Any limitation on the period of time arbitration and/or litigation claims must be brought shall not act to reduce the 3 year statute of limitations afforded a franchisee for bringing a claim 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 92–384)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, any general release signed by a franchisee does not apply to the extent prohibited by the Maryland Franchise Registration and Disclosure Law. This means that Checkers franchisees in Maryland retain their rights and protections under Maryland franchise law, even if they sign a general release.
This protection ensures that Maryland franchisees are not forced to waive their legal rights under the Maryland Franchise Registration and Disclosure Law through a general release. The FDD specifies that franchisees can commence a lawsuit against Checkers in Maryland for claims arising under this law, subject to the arbitration obligations outlined in the Franchise Agreement.
The FDD also clarifies that any limitations on the time period for bringing arbitration or litigation claims do not reduce the three-year statute of limitations afforded to franchisees for claims arising under the Maryland Franchise Registration and Disclosure Law. Furthermore, any claims under this law must be brought within three years after the grant of the franchise. This provision aims to protect franchisees from inadvertently waiving their rights due to time constraints imposed by the franchise agreement.