Is the addition to Section 8.2.f of the Floyds 99 agreement related to a release?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
ent signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
RIDER TO THE FLOYD'S 99 FRANCHISING, LLC DEVELOPMENT AGREEMENT FOR THE STATE OF MARYLAND
| Developer is dated, 20 | This Rider to the Development Agreement by and between Floyd's 99 Franchising, LLC and | ||
|---|---|---|---|
| 1. | The following statement is added at the end of Section 8.2.f: | ||
| apply to any liability under the Maryland Franchise Registration and Disclosure Law. | Pursuant to the Code of Maryland Regulations (COMAR) 02.02.08.16L, the | ||
| general release required as a condition of renewal, sale and/or assignment/transfer shall not | |||
| 2. |
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 FDD, there are two instances of additions to Section 8.2.f in the franchise agreement, and both relate to releases. For franchisees in Maryland, the addition to Section 8.2.f specifies that the general release required for renewal, sale, or transfer of the franchise does not apply to liabilities under the Maryland Franchise Registration and Disclosure Law. This means that franchisees in Maryland cannot be forced to release the franchisor from liability regarding Maryland franchise law to renew, sell, or transfer their franchise.
For franchisees in Minnesota, the addition to Section 8.2.f states that any release executed in connection with the agreement will not apply to claims arising under the Minnesota Franchise Act. This protects Minnesota franchisees from waiving their rights under Minnesota franchise law through a general release.
These stipulations are important for prospective franchisees as they clarify that Floyds 99 franchisees in Maryland and Minnesota retain their rights and protections under their respective state franchise laws, even when signing general releases related to the franchise agreement. This ensures that franchisees in these states can pursue legal action if Floyds 99 violates state franchise regulations, regardless of any release agreements.