Does the Spray Net General Release apply to liability under the Maryland Franchise Registration and Disclosure Law?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
The following is added to Item 5:
Based upon the franchisor's financial condition, the Maryland Securities Commissioner has required a financial assurance. Therefore, all initial fees and payments owed by franchisees shall be deferred until the franchisor completes its pre-opening obligations under the franchise agreement. In addition, all development fees and initial payments by area developers shall be deferred until the first franchise under the multi-unit development agreement opens.
The following is added to 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.
You may bring an action under such law within three years after the grant of the franchise.
You have the right to file a lawsuit alleging a cause of action arising under the Maryland Franchise Law in any court of competent jurisdiction in the State of Maryland.
The Franchise Agreement provides for termination upon bankruptcy of the franchisee. This provision may not be enforceable under federal bankruptcy law.
**SPRAY-NET INC.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 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 franchisees in Maryland retain their rights and protections under Maryland franchise law, even when signing a general release in connection with franchise renewal, sale, or transfer.
This protection ensures that Maryland Spray Net franchisees cannot inadvertently waive their rights under the Maryland Franchise Law through a general release. Franchisees have three years after the grant of the franchise to bring an action under Maryland Franchise Law. This provision also affirms the franchisee's right to file a lawsuit alleging a cause of action arising under the Maryland Franchise Law in any court of competent jurisdiction within the State of Maryland.
Furthermore, any representations requiring prospective Spray Net franchisees to assent to a release, estoppel, or waiver of liability are not intended to act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. This addendum is incorporated into the franchise agreement, reinforcing the protection of franchisee rights under Maryland law.