Does the general release required as a condition of renewal, sale, or assignment/transfer for a Crave franchise apply to any liability under the Maryland Franchise Registration and Disclosure Law?

According to Crave's 2025 Franchise Disclosure Document, the general release required as a condition of renewal, sale, or assignment/transfer does not apply to any liability under the Maryland Franchise Registration and Disclosure Law. This protection is specifically outlined in the State Addendum for Maryland. This addendum modifies the franchise agreement to ensure that franchisees in Maryland retain their rights under the Maryland Franchise Registration and Disclosure Law, regardless of any general release they might sign during renewal, sale, or transfer of the franchise.

This provision is significant for prospective Crave franchisees in Maryland because it prevents them from inadvertently waiving their rights to pursue claims under Maryland franchise law. The addendum ensures that franchisees can still hold Crave accountable for any violations of the Maryland Franchise Registration and Disclosure Law, even if they have signed a general release. This protection covers various scenarios, including renewal, sale, or assignment of the franchise, providing an additional layer of security for franchisees operating in Maryland.

Furthermore, the FDD states that all representations requiring prospective franchisees to assent to a release, estoppel, or waiver 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. This reinforces the protection afforded to Maryland franchisees, ensuring that no part of the franchise agreement can be interpreted as a waiver of their rights under Maryland franchise law. This clarification helps to avoid any potential disputes or misunderstandings regarding the franchisee's rights and liabilities.

In addition to the general release, the addendum also addresses other important aspects of the franchise relationship in Maryland. It allows franchisees to bring lawsuits in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law and specifies that any such claims must be brought within three years after the grant of the franchise. These provisions collectively enhance the legal protections available to Crave franchisees in Maryland, ensuring a fair and transparent franchise relationship.