For Churchs Chicken franchises in Maryland, is the general release applicable to liability under the Maryland Franchise Registration and Disclosure Law?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Any provisions requiring you to sign a general release of claims against Cajun, including upon execution, transfer and renewal of the franchise agreements, does not release any claim you may have under the Maryland Franchise Registration and Disclosure Law.
Section 14-216(c)(25) of the Maryland Franchise Registration and Disclosure Law provides that any provision in a franchise agreement that requires you to file suit against Cajun in a forum outside of Maryland is void with respect to any cause of action otherwise enforceable in Maryland. A franchisee in Maryland may sue in Maryland for claims 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.
- The Compliance Questionnaire for New Franchisees ("Compliance Questionnaire") included in the Disclosure Document shall be amended to add the following:
Section 14-226 of the Maryland Franchise Registration and Disclosure Law prohibits a franchisor from requiring a prospective franchisee to assent to any release, estoppel, or waiver of liability as a condition of purchasing a franchise. Your representations in the Compliance Questionnaire are not intended to, nor shall they, act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 50–55)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, any general release signed by a franchisee does not release claims under the Maryland Franchise Registration and Disclosure Law. This means that even if a franchisee signs a general release, they still retain their rights and protections under Maryland's franchise law.
This protection extends to provisions requiring franchisees to file suits outside of Maryland. The FDD states that any provision mandating a suit against Churchs Chicken in a forum outside of Maryland is void concerning any cause of action enforceable in Maryland. A franchisee can sue Churchs Chicken in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
Furthermore, the Compliance Questionnaire that new franchisees complete cannot act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. Any claims under this law must be brought within three years after the franchise is granted. This ensures that franchisees in Maryland are not forced to give up their legal rights under the state's franchise laws as a condition of purchasing or operating a Churchs Chicken franchise.