For City Wide franchisees in Maryland, does the general release required as a condition of transfer apply to any liability under the Maryland Franchise Registration and Disclosure Laws?

According to the 2025 City Wide Franchise Disclosure Document, the general release required as a condition of transfer for franchisees in Maryland does not apply to any liability under the Maryland Franchise Registration and Disclosure Laws. This means that even if a franchisee signs a general release when transferring their franchise, they still retain the right to pursue claims related to violations of Maryland's franchise laws. This protection is specifically carved out to ensure franchisees do not inadvertently waive their rights under Maryland law during the transfer process.

This provision is designed to protect franchisees in Maryland by ensuring they do not unknowingly relinquish their rights under the Maryland Franchise Registration and Disclosure Laws when transferring their franchise. The FDD emphasizes this point by stating that the general release required as a condition of transfer will not apply to any liability under these laws. This ensures that franchisees can still pursue claims related to violations of Maryland's franchise laws, even after signing a general release.

For a prospective City Wide franchisee in Maryland, this is a beneficial provision. It offers an additional layer of protection, ensuring that they do not waive their rights under Maryland franchise law when transferring their franchise. This allows franchisees to address any potential issues or violations of the Maryland Franchise Registration and Disclosure Laws, even after the transfer has been completed. This clause provides franchisees with recourse and protects their interests under Maryland law.