According to the 2025 Floyds 99 Franchise Disclosure Document, the scope of claims released by the franchisee in the general release varies by state. In Minnesota, any release executed in connection with the Franchise Agreement will not apply to any claims that may arise under the Minnesota Franchise Act. Similarly, in Indiana, any releases signed by the franchisee will not apply to claims arising under the Indiana Franchise Disclosure Law and the Indiana Deceptive Practices Act. In Maryland, the general release required as a condition of renewal, sale, and/or assignment/transfer does not apply to any liability under the Maryland Franchise Registration and Disclosure Law.

These state-specific addenda to the Floyds 99 Franchise Agreement provide franchisees with additional protections and ensure that they do not waive their rights under state franchise laws when signing a general release. This is particularly important because franchise laws are designed to protect franchisees from unfair practices by franchisors. The addenda reflect a recognition of the power imbalance that can exist between franchisors and franchisees and aim to level the playing field.

For a prospective Floyds 99 franchisee, these stipulations mean that even if they sign a general release, they retain the right to pursue claims under the franchise laws of Minnesota, Indiana, and Maryland. This can be a significant benefit, as it allows franchisees to address potential issues or disputes that may arise during the franchise term without being barred by the release. Franchisees should carefully review the specific language of the addenda and consult with an attorney to fully understand their rights and obligations in their respective states.