conditional

Does the general release agreement for Cream include a provision for Maryland residents?

Cream Franchise · 2025 FDD

Answer from 2025 FDD Document

If the franchised business is located in Maryland or if you are a resident of Maryland, the following shall apply: Any general release provided for hereunder shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.

[Signature Page Follows]

Source: Item 23 — RECEIPTS (FDD pages 61–192)

What This Means (2025 FDD)

According to Cream's 2025 Franchise Disclosure Document, the general release agreement does include specific provisions for Maryland residents. These provisions apply if the franchisee is a resident of Maryland, the franchised business operates in Maryland, or the franchise offer was made or accepted in Maryland.

Specifically, any general release required as a condition of renewal, sale, assignment, or transfer will not apply to claims or liabilities arising under the Maryland Franchise Registration and Disclosure Law. This means that Maryland franchisees retain their rights under Maryland franchise law, even if they sign a general release. This protection is in place due to COMAR 02.02.08.16L, a Maryland regulation.

Additionally, Cream's FDD states that a franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration Disclosure Law, and any such claims must be brought within three years after the grant of the franchise. This ensures that Maryland franchisees have a forum to address grievances related to franchise law violations within a specified timeframe. The FDD also clarifies that any representations requiring prospective franchisees to assent to a release, estoppel, or waiver of liability do not act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.