For 360 Painting franchisees, what effect do statements or acknowledgments signed at the commencement of the franchise relationship have on waiving claims under state franchise law in Maryland?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 42–46)
What This Means (2025 FDD)
According to the 2025 FDD, for 360 Painting franchisees in Maryland, any statement, questionnaire, or acknowledgment signed at the beginning of the franchise relationship will not waive claims under Maryland franchise law. This includes claims related to fraud in the inducement or disclaiming reliance on statements made by 360 Painting or its representatives. This protection is specifically designed to override any conflicting terms in other franchise documents.
This provision ensures that Maryland franchisees retain their rights under state franchise law, regardless of any agreements or acknowledgments made when starting the franchise. It prevents 360 Painting from using standard contract language to inadvertently or intentionally limit a franchisee's ability to pursue legal claims related to violations of Maryland's franchise regulations.
For a prospective 360 Painting franchisee in Maryland, this addendum offers significant protection. It means that even if certain documents contain language that appears to waive rights or disclaim reliance on franchisor statements, those clauses will not be enforceable under Maryland law. This ensures franchisees can seek legal recourse if they believe they were misled or defrauded during the franchise sales process.
This type of state-specific addendum is common in franchise agreements to comply with varying state laws. Franchisees should always carefully review these addenda, as they often provide crucial protections and clarifications that modify the standard franchise agreement.