To what liabilities does the Crab N Spice release NOT apply?

According to the 2024 Crab N Spice Franchise Disclosure Document, the general release that a franchisee may be required to sign as a condition of renewal, sale, or assignment/transfer of the franchise does not apply to any liability under the Maryland Franchise Law. This means that even if a franchisee signs a general release, Crab N Spice cannot be released from liabilities arising from violations of Maryland's franchise regulations.

Additionally, the FDD includes riders for several other states (Minnesota, New York, North Dakota, Rhode Island, and Washington) that modify the standard franchise agreement to comply with those states' franchise laws. For example, the North Dakota rider specifies that franchisees are not required to consent to a limitation of claims and that the statute of limitations under North Dakota law applies. The Washington Addendum states that a release or waiver of rights executed by a franchisee shall not include rights under the Washington Franchise Investment Protection Act except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel.

These state-specific provisions are important for prospective franchisees to understand, as they ensure that franchisees do not unknowingly waive their rights under state franchise laws when signing a general release or the franchise agreement itself. Franchisees should carefully review the rider applicable to their state and consult with an attorney to fully understand their rights and obligations.