Does the Maryland Franchise Registration and Disclosure Law affect Pearce Bespoke's ability to require a franchisee's assent to a release of liability as a condition for the renewal of the franchise?

According to Pearce Bespoke's 2025 Franchise Disclosure Document, the Maryland Franchise Registration and Disclosure Law does impact Pearce Bespoke's ability to require a franchisee's assent to a release of liability as a condition for the renewal of the franchise. Specifically, the Maryland law prohibits Pearce Bespoke from requiring a franchisee's assent to a release of liability under that law as a condition for the sale, renewal, assignment, or transfer of the franchise.

The FDD includes an addendum required by the state of Maryland that amends certain provisions in the franchise documents to align with the Maryland Franchise Law. This addendum clarifies that no requirement for a franchisee to agree to a release of liability as a condition of purchasing a Pearce Bespoke franchise will act as a release of any liability under the Maryland Franchise Law.

Furthermore, the FDD states that any general release required by the terms and conditions of the Franchise Agreement as a condition of renewal, assignment, or transfer will not apply to any liability under the Maryland Franchise Law. This ensures that franchisees retain their rights and protections under Maryland law, even when signing a general release for renewal or transfer purposes.

In practical terms, this means that if a Pearce Bespoke franchisee in Maryland is asked to sign a release as part of their franchise renewal, that release cannot waive their rights or claims under the Maryland Franchise Registration and Disclosure Law. This provides an added layer of protection for franchisees operating in Maryland.