What is the scope of the 'general release' mentioned in the Floyds 99 rider to the Development Agreement for Maryland?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 | |||
| 3. | The following statement is added to the end of Sections 13.2 and 13.16: | ||
| Law. | All representations requiring prospective franchisees to assent to a release, | ||
| estoppel or waiver of liability are not intended to nor shall they act as a release, estoppel | |||
| or waiver of any liability incurred under the Maryland Franchise Registration Disclosure |
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 the general release required for renewal, sale, and/or assignment/transfer of the franchise. This rider ensures that the general release does not apply to any liability arising under the Maryland Franchise Registration and Disclosure Law, as mandated by the Code of Maryland Regulations (COMAR) 02.02.08.16L. This provision protects the franchisee's rights under Maryland franchise law, preventing them from inadvertently waiving those rights through a standard release agreement.
Furthermore, the Maryland Rider specifies that any representations requiring prospective franchisees to assent to a release, estoppel, or waiver of liability will not act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration Disclosure Law. This reinforces the protection afforded to franchisees under Maryland law, ensuring that they cannot be compelled to relinquish their legal rights through standard contractual language.
In practical terms, this means that a Floyds 99 franchisee in Maryland retains the right to pursue claims under Maryland's franchise laws, even if they sign a general release in connection with renewal, sale, or transfer of the franchise. This provision provides an added layer of security for franchisees, ensuring that they are not disadvantaged by standard release agreements that might otherwise compromise their legal standing under state law.