What statement is added to the end of Sections 13.2 and 13.16 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 release required as a condition of renewal, sale and/or assignment/transfer shall not | |||
| 2. | The following statement is added at the end of Section 13.4: | ||
| within three years after the grant of the franchise. | The Developer may commence any cause of action against the Franchisor in any court of | ||
| competent jurisdiction, including the state or federal courts of Maryland. Any claims | |||
| arising under the Maryland Franchise Registration and Disclosure Law must be brought | |||
| 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, a specific statement is added to the end of Sections 13.2 and 13.16 of the Development Agreement for developers in Maryland. This statement clarifies that any requirements for prospective franchisees to agree to a release, estoppel, or waiver of liability do not act as a release, estoppel, or waiver of liability incurred under the Maryland Franchise Registration Disclosure Law. This addition is part of a Maryland Rider to the Development Agreement.
In practical terms, this means that while Floyds 99's standard franchise agreement may contain clauses that appear to limit the franchisee's ability to sue or make claims against the franchisor, these clauses will not be enforced in Maryland to the extent that they conflict with the Maryland Franchise Registration and Disclosure Law. This protects the franchisee's rights under Maryland law, ensuring they cannot unknowingly waive their legal protections.
This type of state-specific rider is common in franchising, as state laws vary significantly regarding franchise relationships and franchisee protection. Floyds 99 must ensure its agreements comply with the specific regulations of each state where it offers franchises. Prospective franchisees in Maryland should carefully review the Maryland Rider and understand their rights under the Maryland Franchise Registration and Disclosure Law, consulting with an attorney if necessary.