Can the Dryer Vent Squad general release be changed orally?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
a Code 23-2-2.7-1(5) prohibits a prospective general release of claims subject to the Indiana Deceptive Franchise Practices Law.
- C. ITEM 17(r) is amended subject to Indiana Code 23-2-2.7-1(9) to provide that the post-term noncompetition covenant shall have a geographical limitation of the territory granted to Franchisee.
- D. ITEM 17(v) is amended to provide that Franchisees will be permitted to commence litigation in Indiana for any cause of action under Indiana Law.
- E. ITEM 17(w) is amended to provide that in the event of a conflict of law, Indiana Law governs any cause of action that arises under the Indiana Disclosure Law or the Indiana Deceptive Franchise Practices Act.
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Maryland FDD Amendment
Amendments to the Dryer Vent Squad Franchise Disclosure Document
Item 17, "Renewal, Termination, Transfer and Dispute Resolution," is supplemented, by the addition of the following:
- A. 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.
- B. A Franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
- C. Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise.
- D. In the event of a conflict of laws if required by the Maryland Franchise Registration and Disclosure Law, Maryland law shall prevail.
- E. The Franchise Agreement provides for termination upon bankruptcy. This provision may not be enforceable under federal bankruptcy law (11 U.S.C. Section 101, et seq.).
- F. All representations requiring prospective franchisees to assent 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.
Source: Item 23 — RECEIPTS (FDD pages 51–207)
What This Means (2024 FDD)
Based on the 2024 Dryer Vent Squad FDD, the franchise agreement includes amendments specific to certain states like Maryland and Michigan that address the enforceability and scope of general releases. In Maryland, the general release required as a condition of renewal, sale, or transfer does not apply to liabilities arising under the Maryland Franchise Registration and Disclosure Law. This means that franchisees in Maryland retain their rights and protections under Maryland franchise law, regardless of any general release they may have signed.
For prospective Dryer Vent Squad franchisees in Maryland, this amendment ensures that they do not waive their rights to sue the franchisor for violations of Maryland franchise law, even if a general release is part of the franchise agreement. This provides an added layer of protection for franchisees in that state. Similarly, Michigan prohibits certain unfair provisions, including requirements that franchisees assent to releases that deprive them of rights and protections under the Michigan Franchise Act, although franchisees can settle claims after entering the agreement.
These amendments highlight the importance of understanding state-specific franchise laws and how they can modify the terms of the franchise agreement. While the FDD does not explicitly state whether the general release can be changed orally, the written amendments for Maryland and Michigan suggest that any changes or waivers related to franchisee rights must be documented and comply with state laws to be enforceable. A prospective franchisee should consult with a legal professional to fully understand the implications of these provisions and whether oral modifications to the general release are permissible in their specific jurisdiction.