Does the All County Acknowledgment Addendum require franchisees to confirm they have reviewed the Franchise Agreement?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
As you know, you and we are entering into a Franchise Agreement for the operation of an ALL COUNTY® franchise. The purpose of this Acknowledgment Addendum is to determine whether any statements or promises were made to you that we have not authorized or that may be untrue, inaccurate or misleading, and to be certain that you understand the limitations on claims that may be made by you by reason of the offer and sale of the franchise and operation of your business. Please review each of the following questions carefully and provide honest responses to each question. All representations requiring prospective franchisees to assent to a release, estoppel or waiver of liability are not intended to nor shall they act as a release, estoppel or waiver of liability incurred under the Maryland Franchise Registration and Disclosure Law.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
Based on the 2025 All County Franchise Disclosure Document, the Acknowledgment Addendum serves to confirm that prospective franchisees understand the terms and limitations of the franchise agreement. The addendum aims to verify that no unauthorized promises or misleading statements were made during the franchise sales process. Franchisees are expected to provide honest responses to questions within the addendum, ensuring they are fully aware of the obligations and restrictions involved in operating an All County franchise. This process helps All County ensure that franchisees are entering the agreement with a clear understanding of their rights and responsibilities.
However, the addendum explicitly states that it is not intended to act as a release, estoppel, or waiver of liability under the Maryland Franchise Registration and Disclosure Law. This means that franchisees in Maryland retain their legal rights and protections under state franchise law, regardless of any statements made in the addendum. This provision is particularly important for franchisees in Maryland, as it ensures that they cannot inadvertently waive their rights through the acknowledgment process.
For franchisees in states like California, Illinois, Hawaii, New York, and Virginia, there are specific addenda addressing state-specific regulations and protections. These addenda often include provisions that prevent franchisees from waiving claims of fraud or disclaiming reliance on statements made by All County during the franchise sales process. These state-specific addenda highlight the importance of understanding the legal landscape in the franchisee's particular state and how it interacts with the franchise agreement.
Overall, the Acknowledgment Addendum is a tool used by All County to ensure transparency and understanding on the part of the franchisee. While it does not explicitly state that franchisees must confirm they have reviewed the Franchise Agreement, the nature of the questions and acknowledgments within the addendum implies that franchisees should have a thorough understanding of the agreement's terms. Prospective franchisees should carefully review all documents, including the Franchise Agreement and any state-specific addenda, before signing the Acknowledgment Addendum.