When are Deck Medic franchisees required to sign a general release of claims?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
The general release required as a condition of renewal, sale, and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, a general release of claims is required as a condition of renewal, sale, and/or assignment or transfer of a Franchise Agreement. However, the Maryland FDD Amendment specifies that this general release does not apply to any liability under the Maryland Franchise Registration and Disclosure Law. This means that while Deck Medic franchisees may be asked to sign a general release under those circumstances, this release cannot waive their rights to make claims under Maryland franchise law.
This amendment is included to ensure compliance with Maryland franchise regulations, which aim to protect franchisees' rights. Specifically, Maryland law prohibits requiring franchisees to waive their right to file a lawsuit in Maryland claiming a violation of the Maryland Franchise Law. The amendment acknowledges potential conflicts with the Federal Arbitration Act and clarifies that franchisees in Maryland retain their right to sue under Maryland franchise law, regardless of the general release.
For prospective Deck Medic franchisees in Maryland, this amendment provides an important safeguard. It ensures that they cannot be forced to give up their legal rights under Maryland franchise law when renewing, selling, or transferring their franchise. This protection is particularly relevant given the franchise agreement's provisions for dispute resolution through arbitration, which might otherwise limit a franchisee's ability to pursue legal claims in court.