Does the general release required for renewal or assignment/transfer of a Chem Dry franchise apply to liability under the Maryland Franchise Registration and Disclosure Law?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
MARYLAND
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, for franchises offered and sold in Maryland, the general release required as a condition of renewal, assignment, or transfer 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, they do not waive their rights to pursue claims against Chem Dry under Maryland's franchise law.
Additionally, the FDD states that a Chem Dry franchisee may 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 protection is specific to Maryland law. Franchisees in other states may be subject to different requirements regarding general releases and their impact on potential legal claims. This ensures that franchisees in Maryland retain their legal rights under the state's franchise regulations, even after signing a general release during renewal or transfer.