For 1-800-GOT-JUNK? franchisees in Maryland, can a franchisee waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on any statement made by the franchisor?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
Item 17 of the Disclosure Document and sections of the Franchise Agreement requiring that you sign a general release as a condition of renewal, sale and assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
No statement, questionnaire, or acknowledgment 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.
The Franchisee Disclosure Questionnaire and Certification attached as Exhibit J to the Franchise Disclosure Document does not apply to Maryland franchisees and should not be signed by Maryland franchisees.
The Franchise Agreement is revised to state that any claims under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise.
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, Maryland franchisees are protected from waiving certain rights. Specifically, no statement, questionnaire, or acknowledgment signed by a franchisee in connection with starting the franchise can waive claims under Maryland franchise law, including claims of fraud.
This protection also extends to disclaiming reliance on statements made by 1-800-GOT-JUNK?, its sellers, or anyone acting on its behalf. This means a franchisee cannot be forced to agree they didn't rely on information provided by 1-800-GOT-JUNK? during the franchise sales process. This provision overrides any other conflicting terms in any document related to the franchise agreement.
In addition, Item 17 of the Disclosure Document and sections of the Franchise Agreement requiring that you sign a general release as a condition of renewal, sale and assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law. The Franchisee Disclosure Questionnaire and Certification attached as Exhibit J to the Franchise Disclosure Document does not apply to Maryland franchisees and should not be signed by Maryland franchisees.
These stipulations ensure that Maryland franchisees retain their legal rights and protections under state franchise law, preventing 1-800-GOT-JUNK? from using contractual language to circumvent these protections. Any claims under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise.