What is the significance of COMAR 02.02.08.16L in relation to the Floyds 99 franchise agreement?

According to the 2025 Floyds 99 Franchise Disclosure Document, COMAR 02.02.08.16L is a regulation within the Code of Maryland Regulations that impacts the franchise agreement for franchisees operating in Maryland. Specifically, it states that any general release required as a condition of renewal, sale, assignment, or transfer of the franchise does not apply to liabilities arising under the Maryland Franchise Registration and Disclosure Law. This means that Floyds 99 franchisees in Maryland cannot be forced to release the franchisor from liability regarding Maryland franchise law as a condition of renewing their agreement or transferring the franchise. This protects the franchisee's rights under Maryland law.

This regulation ensures that Floyds 99 franchisees in Maryland retain their legal rights and recourse under the Maryland Franchise Registration and Disclosure Law, even when signing general releases related to franchise renewal, sale, or transfer. It prevents Floyds 99 from using these releases to shield itself from potential liabilities under Maryland franchise law. This is particularly important because franchise laws are designed to protect franchisees from unfair practices by franchisors, and this regulation ensures that franchisees can still pursue claims if they believe their rights have been violated.

In essence, this addendum to the Floyds 99 franchise agreement for the state of Maryland provides an additional layer of protection for franchisees. It ensures that the general releases, which are common in franchise agreements, do not inadvertently waive the franchisee's rights under Maryland franchise law. This is a beneficial provision for prospective Floyds 99 franchisees in Maryland, as it preserves their ability to seek legal remedies if necessary.