Under what condition does the general release provided in the Cicis amendment not apply?

According to the 2025 Cicis Franchise Disclosure Document, the general release provided in the amendment does not apply if the restaurant operated under the Original Franchise and/or New Franchise Agreement is located in Maryland. Additionally, the release does not apply if any of the releasing parties are residents of Maryland. In these specific cases, any general release will not cover liabilities arising under the Maryland Franchise Registration and Disclosure Law. This means that franchisees in Maryland retain their rights and protections under Maryland franchise law, regardless of any general release they may have signed.

This provision is significant for prospective Cicis franchisees in Maryland as it ensures that they do not waive their rights under the Maryland Franchise Registration and Disclosure Law. These rights can include claims related to fraud, misrepresentation, or other violations of state franchise laws. The Maryland-specific clauses in the franchise agreement and area development agreement further emphasize the state's commitment to protecting franchisees.

It is common for franchise agreements to include general releases to protect the franchisor from future claims. However, state laws like the Maryland Franchise Registration and Disclosure Law can override these general releases to provide additional protection to franchisees. Prospective franchisees should always consult with an attorney to fully understand their rights and obligations under both the franchise agreement and applicable state laws.

For Cicis franchisees, this means that even if they sign a general release, they still have the right to bring claims under the Maryland Franchise Registration and Disclosure Law if they are located in Maryland or are residents of Maryland. This provides an added layer of security and protection for franchisees operating in this state.