Where are additional statements added in the Cicis FDD regarding requirements for renewal/extension and conditions for franchisor approval of transfer?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
The following is added to the end of the "Summary" sections of Item 17.c., entitled "Requirements for franchisee to renew or extend", and Item 17.m., entitled "Conditions for franchisor approval of transfer":
Pursuant to COMAR 02.02.08.16L, any release required as a condition of renewal and/or assignment/transfer will not apply to claims arising under the Maryland Franchise Registration and Disclosure Law.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 58–64)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, additional statements regarding the requirements for a franchisee to renew or extend their franchise agreement and the conditions for franchisor approval of transfer are added in Item 17 for franchisees in Maryland. Specifically, these additions are located at the end of the "Summary" sections of Item 17.c, entitled "Requirements for franchisee to renew or extend", and Item 17.m, entitled "Conditions for franchisor approval of transfer".
These additions clarify that any release required as a condition of renewal, assignment, or transfer will not apply to claims arising under the Maryland Franchise Registration and Disclosure Law, as per COMAR 02.02.08.16L. This means that Cicis franchisees in Maryland are protected from waiving their rights under Maryland franchise law when renewing their agreement or transferring ownership.
This disclosure is important for prospective Cicis franchisees in Maryland as it ensures that they retain their legal rights under Maryland franchise law, even when signing releases related to renewal or transfer. This provides an added layer of protection for franchisees operating in Maryland.