Are there any exceptions to the requirement of a general release for a Floyds 99 transfer?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
In Items 17.c. and 17.m., any releases you sign will not apply to any claims that may arise under the Indiana Franchise Disclosure Law and the Indiana Deceptive Practices Act.
ADDENDUM TO THE FLOYD'S 99 FRANCHISING, LLC FRANCHISE DISCLOSURE DOCUMENT FOR THE STATE OF MARYLAND
The following provisions apply to all Franchises offered and sold to residents of the State of Maryland and Franchises to be operated in the State of Maryland:
Item 17 is amended as follows:
- b. 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 apply to any liability under the Maryland Franchise Registration and Disclosure Law.
In Items 17.c and 17.m of the Franchise Agreement, any releases you sign will not apply to any claims that may arise under the Minnesota Franchise Act.
You must sign a general release if you renew or transfer your franchise. California Corporations Code §31512 voids a waiver of your rights under the Franchise Investment Law (California Corporations Code §§31000 through 31516). Business and Professions
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, there are exceptions to the general release requirement in certain states. Specifically, for franchises offered and sold to residents of Maryland or franchises to be operated 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. Similarly, in Indiana, any releases signed will not apply to any claims that may arise under the Indiana Franchise Disclosure Law and the Indiana Deceptive Practices Act. In Minnesota, any releases signed will not apply to any claims that may arise under the Minnesota Franchise Act. In California, California Corporations Code §31512 voids a waiver of your rights under the Franchise Investment Law (California Corporations Code §§31000 through 31516). Business and Professions Code §20010 voids a waiver of your rights under the Franchise Relations Act (Business and Professions Code §§20000 through 20043). These exceptions ensure that franchisees in these states retain their rights and protections under state franchise laws, even when signing a general release.
These state-specific addenda to the Floyds 99 franchise agreement highlight the importance of franchisees understanding the specific legal protections afforded to them in their state of operation. The variations in enforceability and waiver provisions across different states reflect the complex legal landscape of franchising in the United States. Prospective franchisees should pay close attention to these addenda and consult with legal counsel to fully understand their rights and obligations.
For a prospective Floyds 99 franchisee, this means that the standard general release form may not be fully enforceable in Maryland, Indiana, Minnesota, or California, particularly concerning rights and claims arising under those states' franchise laws. This could be beneficial to the franchisee, as it preserves their ability to pursue legal action against Floyds 99 Franchising, LLC, if necessary, under the specific protections of their state's franchise laws, despite having signed a general release. Franchisees should be aware of these nuances and seek legal advice to ensure they understand the full scope of their rights and any limitations on the general release they are required to sign.