When transferring a Deck Medic franchise, what release must the franchisee, each owner, and each spouse execute?

According to Deck Medic's 2024 Franchise Disclosure Document, in most cases, the franchisee, each owner, and each spouse must execute and deliver to Deck Medic the Franchise Owner and Spouse Agreement and Guaranty in the form attached to the Franchise Agreement as Exhibit 1. This agreement ensures that these parties are bound by the terms of the franchise agreement, particularly regarding confidentiality and non-competition.

This requirement is part of Deck Medic's broader effort to maintain the integrity of its franchise system and protect its confidential information and brand reputation. By requiring these individuals to sign the Franchise Owner and Spouse Agreement and Guaranty, Deck Medic seeks to ensure that they are legally bound to uphold the terms of the franchise agreement, even after the transfer. This is a common practice in franchising, as franchisors typically want to ensure that all parties involved in the franchise operation are committed to the system and its standards.

However, there is an exception to this requirement for franchises located in Maryland. According to the Maryland FDD Amendment, the general release required as a condition of sale and/or assignment/transfer does not apply to any liability under the Maryland Franchise Registration and Disclosure Law. This means that while the Franchise Owner and Spouse Agreement and Guaranty is still required, it cannot waive any rights or claims under Maryland franchise law. This amendment reflects Maryland's specific franchise regulations, which aim to protect franchisees' rights and ensure compliance with state law.