Are there any exceptions to the claims being released in the Creative World School Release for Creative World School?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
- Sections (c) and (m) of Item 17 are amended by adding the following language:
The general release required as a condition of renewal, sale, and/or assignment or transfer will not apply to any liability under the Maryland Franchise and Disclosure Law (the "Maryland Law").
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- Item 17 is amended by adding the following language after the table:
- (a) The provision of the Franchise Agreement that provides for termination upon bankruptcy of the franchisee may not be enforceable under federal bankruptcy law (11 U.S.C. Section 101, et seq.)
- (b) Any claims arising under the Maryland Law must be brought within 3 years after the grant of the franchise.
- (c) A franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School FDD, there are exceptions to the general release required of franchisees, particularly for those operating in specific states like Maryland and Minnesota. In Maryland, the general release required for renewal, sale, assignment, or transfer of the franchise will not apply to any liability under the Maryland Franchise and Disclosure Law. This means that franchisees in Maryland retain their rights to pursue claims under Maryland franchise law, even after signing a general release. Additionally, any claims arising under the Maryland Law must be brought within 3 years after the grant of the franchise, and a franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
For franchisees in Minnesota, the FDD states that the general releases required must be satisfactory to Creative World School, but they include an exception for matters coming under the Minnesota Franchise law. This ensures that Minnesota franchisees do not waive their rights under Minnesota franchise law when signing a general release. Furthermore, Minnesota law prohibits Creative World School from requiring litigation to be conducted outside of Minnesota, and nothing in the disclosure document or agreement can reduce any of the franchisee's rights as provided for in Minnesota statutes, Chapter 80C, or their rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
These exceptions provide additional protection for franchisees in Maryland and Minnesota, ensuring that they retain their rights under state franchise laws despite any general releases they may be required to sign. This is a beneficial provision for franchisees in these states, as it allows them to pursue legal claims related to their franchise without being barred by a general release. Franchisees in other states should consult with legal counsel to understand the extent to which their rights are protected by state law.