Does the general release provided by Learningrx apply to any liability under the Maryland Franchise Registration and Disclosure Law?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The general release shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
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- The general release does not apply with respect to claims arising under the Washington Franchise Investment Protection Act, RCW 19.100, and the rules adopted thereunder.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, the general release provided in Exhibit G does not apply to any liability under the Maryland Franchise Registration and Disclosure Law. This means that if a Learningrx franchisee in Maryland believes Learningrx has violated the state's franchise laws, the franchisee can still pursue legal action despite signing the general release.
This protection is explicitly stated in the FDD to safeguard franchisees' rights under Maryland law. It ensures that franchisees are not unknowingly waiving their legal rights related to franchise registration and disclosure requirements in Maryland. This is a beneficial provision for prospective franchisees in Maryland, as it provides an added layer of legal protection.
It is common for franchise agreements to include general releases, but it is also typical for these releases to have exceptions for specific state franchise laws. This allows franchisees to resolve disputes with the franchisor while still retaining their rights under franchise-specific regulations. Learningrx also specifies that the general release does not apply to claims arising under the Washington Franchise Investment Protection Act.