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

According to Checkersrallys's 2025 Franchise Disclosure Document, the general release required as a condition of renewal, assignment, or transfer of a franchise does not apply to liability under the Maryland Franchise Registration and Disclosure Law. This means that even if a franchisee signs a general release, they do not waive their rights to bring claims under Maryland's franchise law. This protection is specifically included to comply with Maryland regulations (COMAR 02.02.08 16L). The FDD also states that any general releases signed by the franchisee will not apply to the extent prohibited by the Maryland Franchise Registration and Disclosure Law.

This provision ensures that Checkersrallys franchisees in Maryland retain their statutory rights and protections under Maryland franchise law, regardless of any general release they might sign during renewal or transfer. This is a significant benefit for franchisees as it prevents them from inadvertently waiving their legal rights. The FDD also clarifies that franchisees can still commence a lawsuit against Checkersrallys in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, subject to the arbitration obligations outlined in the Franchise Agreement.

Furthermore, the Checkersrallys FDD states that any limitations on the time period for bringing arbitration or litigation claims will not reduce the three-year statute of limitations afforded to franchisees for claims under the Maryland Franchise Registration and Disclosure Law. This ensures franchisees have adequate time to pursue legal claims under Maryland law, regardless of any contractual limitations in the franchise agreement. These stipulations provide added security and legal recourse for Checkersrallys franchisees operating in Maryland.