Does the release required by Focus Cfo apply to liability under the Maryland Franchise Registration Disclosure Law?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
All representations requiring that Franchisee or any prospective franchisee assent to a release, estoppel or waiver of liability are not intended to nor shall they act as a release, estoppel or waiver of liability incurred under the Marland Franchise Registration and Disclosure Law.
Further, any general release required as a condition of renewal, sale and/or assignment or transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, any releases required of a franchisee do not act as a release, estoppel, or waiver of liability incurred under the Maryland Franchise Registration and Disclosure Law. This protection extends to general releases required as a condition of renewal, sale, assignment, or transfer of the franchise. This ensures that Focus Cfo franchisees in Maryland retain their rights and protections under Maryland law, regardless of any general release agreements they may enter into.
This provision is particularly important for prospective Focus Cfo franchisees in Maryland because it prevents the franchisor from using standard release clauses to circumvent the state's franchise laws. Maryland franchisees maintain their ability to pursue claims under the Maryland Franchise Registration and Disclosure Law, providing an additional layer of security and legal recourse. This addendum is only applicable to franchisees who are residents of Maryland or who locate their franchises in Maryland.
In practical terms, this means that if a Focus Cfo franchisee in Maryland believes they have a claim under the Maryland Franchise Registration and Disclosure Law, they are not prevented from pursuing that claim simply because they signed a general release. This could be relevant in situations involving misrepresentation, failure to disclose required information, or other violations of Maryland franchise law. The franchisee's rights under the Maryland Franchise Registration and Disclosure Law are specifically preserved, regardless of any general releases they may have signed.
Focus Cfo's specific acknowledgement of the Maryland Franchise Registration and Disclosure Law suggests a commitment to compliance within that state. This type of provision is not universally included in franchise agreements, so its presence indicates that Focus Cfo has taken steps to ensure franchisees in Maryland are aware of their rights and protections under state law.