In the general release for Dryer Vent Squad, who is considered the RELEASEE?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD 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)
According to the 2024 Dryer Vent Squad FDD, the Maryland FDD Amendment supplements Item 17 regarding dispute resolution. Specifically, it states that 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. This means that while a franchisee may be required to sign a general release, that release does not cover liabilities arising from violations of Maryland's franchise laws.
This amendment protects Dryer Vent Squad franchisees in Maryland by ensuring they do not waive their rights under Maryland franchise law when signing a general release. This is particularly important during renewal, sale, or transfer of the franchise, as these events often involve the signing of releases. The amendment also explicitly allows a franchisee to bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, reinforcing their legal rights within the state.
Furthermore, any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise. This sets a time limit for franchisees to take legal action under these specific laws. Additionally, the FDD states that 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.
While the amendment clarifies franchisee rights and limitations regarding general releases and legal actions under Maryland law, the document does not specifically define who the RELEASEE is in the general release. A prospective franchisee should seek clarification from Dryer Vent Squad regarding who is considered the RELEASEE in the general release document.