In Maryland, can 1-800-GOT-JUNK? require franchisees to sign a general release as a condition of renewal, sale, assignment, or transfer regarding liability under the Maryland Franchise Registration and Disclosure Law?
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 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, Item 17 of the Disclosure Document and any provision in the Franchise Agreement requiring a franchisee to sign a general release as a condition of renewal, sale, and assignment/transfer do not apply to any liability under the Maryland Franchise Registration and Disclosure Law. This means that 1-800-GOT-JUNK? cannot enforce a clause that requires a franchisee in Maryland to waive their rights or release 1-800-GOT-JUNK? from liabilities under Maryland's franchise laws as a condition of renewing, selling, assigning, or transferring the franchise. This protection ensures that Maryland franchisees retain their legal rights and recourse under state franchise law, regardless of any general release clauses in the franchise agreement.
Furthermore, the FDD states that no statement, questionnaire, or acknowledgment signed by a franchisee in connection with starting the franchise can waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on any statement made by 1-800-GOT-JUNK? or its representatives. This provision reinforces the protection for franchisees by preventing them from inadvertently waiving their rights through standard documents or acknowledgments at the beginning of their franchise relationship. This clause supersedes any other conflicting terms in any document related to the franchise agreement, providing a clear priority for the franchisee's rights under Maryland law.
Additionally, 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 them. This further emphasizes the specific protections and exemptions provided to franchisees in Maryland under the state's franchise laws. The Franchise Agreement is also revised to specify that any claims under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise. This clarification ensures that franchisees are aware of the time frame within which they can pursue legal action under Maryland law.