In the Floyds 99 Development Agreement Rider for Maryland, what is the significance of Section 8.2.f concerning liabilities?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 |
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the Maryland Rider to the Development Agreement includes specific stipulations regarding liabilities, particularly within Section 8.2.f. This section addresses general releases required as a condition of renewal, sale, and/or assignment/transfer of the agreement. The rider explicitly states that these general releases will not apply to any liability arising under the Maryland Franchise Registration and Disclosure Law, as per the Code of Maryland Regulations (COMAR) 02.02.08.16L. This ensures that franchisees do not inadvertently waive their rights under Maryland franchise law when signing such releases.
This provision is significant for prospective Floyds 99 developers in Maryland because it protects their ability to pursue claims under Maryland's franchise laws, even if they have signed a general release. Franchise laws often provide specific protections to franchisees, and this clause ensures those protections remain intact. The rider prevents Floyds 99 from using a standard release to circumvent the franchisee's rights under Maryland law.
In practical terms, this means that if a Floyds 99 developer in Maryland believes the franchisor has violated the Maryland Franchise Registration and Disclosure Law, they can still bring a claim, even if they have previously signed a general release. This offers an additional layer of security and legal recourse for developers operating in Maryland, ensuring that they are not disadvantaged by standard contractual language that might otherwise waive their statutory rights. This type of provision is not uncommon in franchise agreements, as many states have franchise-specific laws designed to protect franchisees.