What specific sections of the Ella Cafe Franchise Agreement are amended by the Maryland Amendment regarding the general release?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
Sections 3.2 and 15.2 require Franchisee to sign a general release as a condition of renewal or transfer of the Franchise, such release shall exclude claims arising under the Maryland Franchise Registration and Disclosure Law.
Any Section of the Franchise Agreement requiring Franchisee to assent to any release, estoppel or waiver of liability as a condition of purchasing the Franchise 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.
The Franchise Agreement is amended to the extent that any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the Franchise.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, the Maryland Amendment modifies specific sections of the Franchise Agreement related to general releases and other legal considerations to comply with the Maryland Franchise Registration and Disclosure Law.
The amendment specifically addresses Sections 3.2 and 15.2, which require a franchisee to sign a general release as a condition of renewal or transfer of the franchise. The amendment clarifies that such releases will not include claims arising under the Maryland Franchise Registration and Disclosure Law, ensuring that franchisees do not waive their rights under Maryland law.
Additionally, any section of the Franchise Agreement that requires a franchisee to agree to a release, estoppel, or waiver of liability as a condition of purchasing the franchise will not act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. This provision aims to protect franchisees' rights under Maryland law, preventing them from inadvertently relinquishing legal protections. The Franchise Agreement is also amended to specify that any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the Franchise.