What is the effect of the statement added to Sections 13.2 and 13.16 of the Floyds 99 Development Agreement?

According to the 2025 Floyds 99 Franchise Disclosure Document, a specific statement is added to the end of Sections 13.2 and 13.16 of the Development Agreement. This addition clarifies that any representations requiring prospective franchisees to agree to a release, estoppel, or waiver of liability are not intended to, and will not, act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration Disclosure Law. This statement is part of a Maryland Rider to the Development Agreement. This rider is executed concurrently with the Development Agreement.

In practical terms, this means that while the Floyds 99 agreement may contain standard clauses about releasing the company from certain liabilities, these clauses will not be enforceable regarding claims arising from violations of Maryland's franchise law. This protects franchisees in Maryland by ensuring they do not unknowingly give up their rights under state franchise law.

This type of provision is often included in franchise agreements to comply with state-specific franchise laws, which vary considerably. Many states have franchise relationship laws that protect franchisees from overreaching by franchisors. The inclusion of such a statement demonstrates Floyds 99's awareness of and compliance with Maryland law, which is a positive sign for prospective franchisees in that state. Franchisees should consult with an attorney to fully understand their rights and obligations under the franchise agreement and applicable state laws.