Does the general release in the Engel & Volkers agreement apply to liabilities under the Maryland Franchise Registration and Disclosure Law?

According to Engel & Volkers' 2025 Franchise Disclosure Document, the general release provisions within the franchise agreement do 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 this law, even if they sign a general release as part of the franchise agreement. This protection ensures that Engel & Volkers franchisees in Maryland can pursue claims related to violations of the Maryland Franchise Registration and Disclosure Law, regardless of any general release they may have signed.

Specifically, the FDD includes a Maryland Amendment to the Engel & Volkers Franchise Agreement, which addresses compliance with Maryland statutes and regulations. This amendment clarifies that the general release provisions do not extend to liabilities under the Maryland Franchise Registration and Disclosure Law. Furthermore, the franchise agreement is amended to explicitly allow franchisees to bring lawsuits in Maryland for claims arising out of this law, and it ensures that the statute of limitations for such claims is not reduced below the three-year period afforded by Maryland law.

Additionally, any acknowledgments or representations made by the franchisee in the franchise agreement that disclaim actions constituting a violation of the Franchise Law will not act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. This provision further safeguards the franchisee's rights and ensures that they cannot inadvertently waive their protections under Maryland law through standard contractual language. These stipulations provide significant legal protection for Engel & Volkers franchisees operating in Maryland.