In Maryland, are any representations requiring City Wide franchisees to release or waive liability considered a release or waiver of liability under the Maryland Franchise Registration and Disclosure Law?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
MARYLAND
The Franchise Disclosure Document and Franchise Agreement are amended to include the following modifications:
All representations requiring prospective franchisees to assent to a release, estoppel or waive of liability 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.
The first sentence of the "Summary" section of ITEM 17(c) of the Franchise Agreement chart entitled Requirements for You to Renew or Extend is deleted in its entirety and the following is substituted in its place.
"You must be in good standing, including compliance with the Annual Revenue Per Capita Growth or capture Market Share requirement; notify CITY WIDE in writing 12 months before the Franchise Agreement expires that you want a Successor Term; perform all required maintenance, refurbishing, renovating, remodeling, and equipment upgrades at your expense; sign CITY WIDE's then-current form of Franchise Agreement, which may differ from the terms of the Franchise Agreement; pay a successor fee of 50% of your Initial Franchise Fee; sign a mutual release of all claims you may have against CITY WIDE (CITY WIDE will mutually release you), except for claims arising under the Maryland Franchise Registration and Disclosure Law; and a general release shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law; and provide proof to CITY WIDE that you have the right to remain at your Location."
The "Summary" sections of ITEM 17(v) and 17(w) entitled Choice of Forum and Choice of Law, respectively, are amended by the addition of the following language:
", except for claims arising under the Maryland Franchise Registration and Disclosure Law (Section 14-216[25]), including the right to submit matters to the jurisdiction of the courts of Maryland."
The following sentence is added to the end of Section 2.2.5 of the Franchise Agreement:
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, specific stipulations are in place to protect franchisees in Maryland. The FDD and Franchise Agreement are amended to ensure that any representations requiring a franchisee to release, estop, or waive liability will not act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. This amendment is designed to align with Maryland's franchise regulations, ensuring franchisees retain their rights and protections under state law.
Specifically, the summary section of ITEM 17(c) regarding renewal or extension requirements is modified. While franchisees typically sign a mutual release of claims against City Wide upon renewal, this release will not apply to claims arising under the Maryland Franchise Registration and Disclosure Law. Similar amendments are made to ITEM 17(v) and 17(w) concerning the choice of forum and choice of law, ensuring that franchisees can submit matters to Maryland courts for claims arising under the Maryland Franchise Registration and Disclosure Law.
Additional clauses are added to Sections 2.2.5, 4.1.2, and 13.4.6 of the Franchise Agreement, clarifying that any general release required as a condition of renewal, refund, or transfer does not apply to liabilities under the Maryland Franchise Registration and Disclosure Laws. Furthermore, the document explicitly states that franchisees may bring lawsuits in Maryland for claims arising under the Maryland Franchise Registration & Disclosure Law, with a statute of limitations of three years after the franchise grant. These amendments collectively reinforce that City Wide franchisees in Maryland retain their rights and protections under state franchise law, despite any general release or waiver provisions in the standard franchise agreement.