If a general release is required for the assignment/transfer of a Floyds 99 franchise in Maryland, does it apply to liabilities under the Maryland Franchise Registration and Disclosure Law?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
The following provisions apply to all Franchises offered and sold to residents of the State of Maryland and Franchises to be operated in the State of Maryland:
Item 17 is amended as follows:
- b. 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 apply to any liability under the Maryland Franchise Registration and Disclosure Law.
- d. 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 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, if you are a franchisee in Maryland, any general release required as a condition of the sale, renewal, or assignment/transfer of your franchise will not apply to liabilities under the Maryland Franchise Registration and Disclosure Law. This is in accordance with the Code of Maryland Regulations (COMAR) 02.02.08.16L. This means that even if you sign a general release, you still retain your rights and protections under Maryland's franchise laws.
This provision is beneficial for prospective Floyds 99 franchisees in Maryland because it ensures that they cannot inadvertently waive their rights under Maryland franchise law by signing a general release. This protection extends to situations involving renewal, sale, or transfer of the franchise, which are critical junctures in the franchise lifecycle. The Maryland regulations provide an additional layer of security, ensuring franchisees can pursue claims under the Maryland Franchise Registration and Disclosure Law, regardless of any general releases they may have signed.
Furthermore, the FDD specifies that any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise. This statute of limitations is an important detail for franchisees to keep in mind, as it sets a deadline for pursuing legal action related to franchise law violations. This timeframe ensures that franchisees have a reasonable period to identify and address any issues, while also providing a clear cut-off point for potential claims.
In summary, the Maryland addendum to the Floyds 99 Franchise Agreement provides important protections for franchisees, ensuring that general releases do not waive their rights under Maryland franchise law and setting a clear statute of limitations for claims. These provisions aim to protect franchisees and maintain fairness in the franchise relationship within the state of Maryland.