Are there any exceptions to the claims released under the Marble Slab Creamery General Release?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
5. Item 17.
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. 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.
- No statement, questionnaire or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — RECEIPT (FDD pages 101–346)
What This Means (2025 FDD)
According to the 2025 Marble Slab Creamery FDD, there are specific exceptions to the general release required for renewal, sale, assignment, or transfer of a franchise, particularly concerning liability under certain state franchise laws. In Maryland and California, the general release does not apply to liability under the Maryland Franchise Registration and Disclosure Law and the California Franchise Investment Law, respectively. This means that franchisees in these states retain their rights to pursue claims under these laws, regardless of any general release signed.
In Illinois, the waiver within the Multi-Unit Restaurant Agreement does not apply to the extent prohibited by Section 705/41 of the Illinois Franchise Disclosure Act of 1987. This act stipulates that any condition that binds a person acquiring a franchise to waive compliance with any provision of the Act or any other law of the state is void. However, this does not prevent settlement agreements or general releases regarding potential or actual lawsuits filed under the provisions of the Act, nor does it prevent arbitration of any claim pursuant to the provisions of Title 9 of the United States Code.
These exceptions are significant for prospective Marble Slab Creamery franchisees as they provide additional protection and recourse under state franchise laws, ensuring that franchisees do not unknowingly waive their rights. Franchisees should be aware of these state-specific addenda and how they impact their rights and obligations under the Franchise Agreement. It is advisable to consult with a legal professional to fully understand the implications of these provisions and how they apply to their specific circumstances.