Does the general release in the Cinnabon franchise agreement apply to claims arising from representations made in the Franchise Disclosure Document?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
In recognition of the requirements of the Maryland Franchise Registration and Disclosure Law, the Disclosure Document for Cinnabon Franchisor SPV LLC for use in the State of Maryland is amended as follows:
ITEM 17 RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION:
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- No release language required on renewal, transfer, or signing the Franchise Agreement will relieve us or any other person, directly or indirectly, from liability imposed by the Maryland Franchise Registration and Disclosure Law.
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- No provision of the Disclosure Document or Franchise Agreement will be construed as a release, estoppel, or waiver by you of any liability we incur under the Maryland Franchise Registration and Disclosure Law.
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- Item 17.v. of this Disclosure Document is modified as follows:
- You can enter into litigation with us in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, as long as the nature of the litigation is not the type of dispute, controversy, claim, action or proceeding which would be subject to arbitration under the Franchise Agreement.
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- Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, the general release included in the franchise agreement does not apply to claims arising under the Maryland Franchise Registration and Disclosure Law. This means that franchisees in Maryland retain their rights and protections under this law, regardless of any general release they may sign.
Specifically, the FDD states that no release language required on renewal, transfer, or signing the Franchise Agreement will relieve Cinnabon from liability imposed by the Maryland Franchise Registration and Disclosure Law. Furthermore, no provision of the Disclosure Document or Franchise Agreement will be construed as a release, estoppel, or waiver by the franchisee of any liability Cinnabon incurs under the Maryland Franchise Registration and Disclosure Law.
This protection extends to litigation, allowing franchisees to pursue claims against Cinnabon in Maryland courts for issues arising under the Maryland Franchise Registration and Disclosure Law, provided the dispute is not subject to arbitration under the Franchise Agreement. However, any such claims must be brought within three years after the grant of the franchise. This ensures that franchisees in Maryland have a legal avenue to address grievances related to franchise law, despite any general release they might have signed.