Does the general release required for renewal, sale, or assignment/transfer of a Spray Net franchise apply to liability under the Maryland Franchise Registration and Disclosure Law?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 of a franchise does not apply to any liability under the Maryland Franchise Registration and Disclosure Law. This protection is specifically outlined in the Maryland Addendum to both the Franchise Disclosure Document and the Franchise Agreement.
This means that even if a Spray Net franchisee signs a general release when renewing, selling, or transferring their franchise, they do not waive their rights to bring a claim under Maryland's franchise law. This provision ensures that franchisees retain their legal rights and protections under Maryland law, regardless of any general release they may have signed.
Furthermore, the FDD states that a franchisee has three years after the grant of the franchise to bring an action under Maryland Franchise Registration and Disclosure Law. This timeframe provides a window for franchisees to identify and address any potential violations of the law. Franchisees also retain 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.