If a Cream franchisee is a resident of Maryland, does the general release agreement include any specific provisions?
Cream Franchise · 2025 FDDAnswer 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.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, there are specific provisions in the general release agreement for franchisees who are residents of Maryland or operate their franchised business in Maryland. These provisions ensure that any general release does not apply to liability under the Maryland Franchise Registration and Disclosure Law. This means that Maryland franchisees retain their rights and protections under Maryland franchise law, even if they sign a general release.
Specifically, any release required as a condition of renewal, sale, assignment, or transfer will not apply to claims or liability arising under the Maryland Franchise Registration and Disclosure Law, as stated under COMAR 02.02.08.16L. Additionally, a franchisee in Maryland has the right to bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration Disclosure Law. However, any such claims must be brought within 3 years after the grant of the franchise.
Furthermore, the FDD states that any representations requiring prospective franchisees to agree 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 under their state's franchise laws, preventing Cream from using general releases to circumvent these legal protections.