For Hyper Kidz franchises in Maryland, does the general release required for renewal, sale, or assignment/transfer apply to liability under the Maryland Franchise Registration and Disclosure Law?

According to the 2024 Hyper Kidz Franchise Disclosure Document, the general release required as a condition of renewal, sale, and/or assignment/transfer for franchises in Maryland does not apply to any liability under the Maryland Franchise Registration and Disclosure Law. This amendment is specifically noted in Item 17 of the FDD. The Franchise Agreement and Multi-Unit Development Agreement are also amended to reflect this.

This means that Hyper Kidz franchisees in Maryland cannot be forced to release the franchisor from liabilities arising under Maryland's franchise laws as a condition of renewing their franchise agreement or when selling/transferring their franchise. This protects the franchisee's rights under Maryland law, ensuring they can pursue legal claims related to franchise registration and disclosure issues without being blocked by a general release.

Furthermore, any statements or acknowledgments signed by a franchisee in Maryland that require them to release, waive, or estop any liability under the Maryland Franchise Registration and Disclosure Law are not intended to act as such. This provision reinforces the protection of franchisees' rights and ensures that they cannot inadvertently waive their legal rights under Maryland franchise law through standard agreements or acknowledgments.