Under what condition can a lawsuit be commenced against Checkers in Maryland, despite the general release?
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.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the general release does not apply to the extent prohibited by the Maryland Franchise Registration and Disclosure Law. This means that despite signing a general release, a franchisee may still be able to commence a lawsuit against Checkers in Maryland.
Specifically, the FDD states that a franchisee can commence a lawsuit against Checkers in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, subject to the franchisee's arbitration obligation under the Franchise Agreement. This provision ensures that franchisees in Maryland retain their rights under Maryland law, even if they have signed a general release.
This protection is significant for prospective Checkers franchisees in Maryland as it ensures that they do not waive their rights to pursue legal claims related to franchise registration and disclosure violations. Franchisees should consult with a legal professional to fully understand their rights and obligations under the Maryland Franchise Registration and Disclosure Law.