For Ledgers franchises in Maryland, does the general release required for renewal, sale, or assignment apply to liability under the Maryland Franchise Registration and Disclosure Law?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
upon termination of this Agreement shall not be mandatory and is hereby made discretionary. However, Franchisee shall execute all other documents necessary to fully rescind all agreements between the parties under this Agreement.
MARYLAND
As to franchises governed by the Maryland Franchise Registration and Disclosure Law, if any of the terms of the Disclosure Document (FDD) or Franchise Agreement (FA) are inconsistent with the terms below, the terms below control.
- A. Item 17.b. of the FDD and Section 1.2.B of the FA is modified to also provide,
- "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.
- B. Item 17.u. of the FDD and Section 9.2E of the FA is modified to also provide,
- "This Franchise Agreement provides that disputes are resolved through arbitration.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, 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. This means that if a Ledgers franchisee in Maryland renews, sells, or transfers their franchise, the general release they are required to sign will not prevent them from pursuing claims related to violations of the Maryland Franchise Registration and Disclosure Law. This protection ensures that franchisees retain their rights under Maryland franchise law even after such transactions.
This provision is specifically designed to protect franchisees' rights under Maryland law. It prevents Ledgers from using a general release to shield itself from liability for violations of the Maryland Franchise Registration and Disclosure Law. This is a significant benefit for franchisees, as it ensures they can still pursue legal action if they believe Ledgers has violated their rights under Maryland franchise law, regardless of whether they have signed a general release in connection with a renewal, sale, or transfer.
Furthermore, the FDD states that 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 and Disclosure Law. This reinforces the protection afforded to franchisees under Maryland law, ensuring that no agreement or representation can inadvertently waive their rights. This clause provides an additional layer of security for franchisees, clarifying that their rights under the Maryland Franchise Registration and Disclosure Law are fully preserved throughout their relationship with Ledgers.