In Maryland, does the general release required by Desi District as a condition of renewal, sale, or assignment/transfer apply to liability under the Maryland Franchise Registration and Disclosure Law?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
The following is added to Item 17:
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.
Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise.
You have the right to file a lawsuit alleging a cause of action arising under the Maryland Franchise Law in any court of competent jurisdiction in the State of Maryland.
Source: Item 23 — RECEIPTS (FDD pages 52–140)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, the general release required as a condition of renewal, sale, or assignment/transfer in Maryland does not apply to liability under the Maryland Franchise Registration and Disclosure Law. This means that even if a franchisee signs a general release, they do not waive their rights to pursue claims against Desi District under this specific Maryland law.
This protection is further reinforced by the statement that any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise. Additionally, franchisees retain the right to file a lawsuit alleging a cause of action under the Maryland Franchise Law in any court of competent jurisdiction within the State of Maryland.
These provisions provide significant safeguards for Desi District franchisees in Maryland, ensuring that they cannot inadvertently waive their rights under franchise law through a general release. It also ensures they have a defined period to bring any claims and can pursue those claims in Maryland courts.