For Chem Dry franchises in Maryland, does the general release required for renewal or assignment/transfer apply to liability under the Maryland Franchise Registration and Disclosure Law?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
The following provisions supersede the Disclosure Document and apply to all franchises offered and sold in the State of Maryland. This also applies to non-residents of Maryland who will operate an N-Hance franchise in the State of Maryland.
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- Item 17 is amended to provide that:
- a. The general release required as a condition of renewal and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
- b. The Franchisee may sue in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
- c. 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 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, specific provisions apply to franchises offered and sold in Maryland, which also extend to non-residents operating an N-Hance franchise in Maryland. One key provision modifies Item 17 of the standard franchise agreement regarding the general release required for renewal or assignment/transfer.
Specifically, the general release that Chem Dry requires as a condition of renewal and/or assignment/transfer does not apply to any liability arising under the Maryland Franchise Registration and Disclosure Law. This means that a franchisee in Maryland cannot be forced to waive their rights to sue Chem Dry for violations of Maryland's franchise law as part of a renewal or transfer agreement.
Furthermore, the FDD states that a Chem Dry franchisee in Maryland has the right to sue in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. Any such claims must be brought within 3 years after the grant of the franchise. This provides a defined timeframe for legal action related to franchise law violations in Maryland.