What is the legal basis for the statement added to Section 8.2.f of the Floyds 99 Development Agreement?
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 |
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, a rider to the Development Agreement specifies that for franchisees in Maryland, a statement is added to the end of Section 8.2.f. This addition is based on the Code of Maryland Regulations (COMAR) 02.02.08.16L.
This regulation clarifies that the general release typically required for renewal, sale, or assignment/transfer of the franchise does not apply to any liability under the Maryland Franchise Registration and Disclosure Law. This means that Floyds 99 franchisees in Maryland cannot be forced to waive their rights under Maryland franchise law as a condition of renewing their agreement or transferring their franchise.
This provision protects franchisees by ensuring they retain their legal rights under Maryland franchise law, even when signing a general release. It prevents Floyds 99 from using the general release to shield itself from liabilities arising from violations of Maryland franchise regulations. Prospective franchisees in Maryland should understand that this rider provides additional legal protection specific to Maryland franchise laws, ensuring they cannot inadvertently waive these rights.