What Maryland law is referenced regarding the general release of claims in the Dryject Franchise Agreement?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
Sections 6(f) and 28(d)(viii) of the Franchise Agreement say that the we may require you to sign a general release of claims as a condition of renewal or transfer of your franchise. Under Maryland law (COMAR 02.02.08.16L), this condition will not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
The Franchise Agreement and the Franchise Compliance Questionnaire are amended as follows:
"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."
A franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
Any claims arising under the Maryland Franchise Registration and Disclosure law must be brought within three years after the franchise is granted.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject Franchise Disclosure Document, the Maryland Addendum to the Franchise Agreement addresses the general release of claims. Specifically, it references COMAR 02.02.08.16L, which states that any requirement for a franchisee to sign a general release of claims as a condition of renewal or transfer does not apply to liability under the Maryland Franchise Registration and Disclosure Law. This means Dryject franchisees in Maryland cannot be forced to release the company from liability related to Maryland franchise law when renewing or transferring their franchise.
This provision protects Dryject franchisees in Maryland by ensuring they retain their rights under the Maryland Franchise Registration and Disclosure Law, even when signing a general release for renewal or transfer. The addendum also clarifies that any representations requiring a franchisee to release, waive, or estop liability do not apply to liability incurred under the Maryland Franchise Registration and Disclosure Law. This reinforces the protection afforded to franchisees under Maryland law.
Furthermore, the Dryject FDD states that a franchisee can bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. However, any such claims must be brought within three years after the franchise is granted. This statute of limitations is an important consideration for prospective franchisees in Maryland, as it sets a deadline for pursuing legal action related to franchise law violations.