What is the effect of the All County Franchise Agreement addendum for Maryland on representations requiring prospective franchisees to assent to a release?

According to All County's 2025 Franchise Disclosure Document, the addendum to the franchise agreement for Maryland addresses representations and releases. Specifically, it clarifies that any representations requiring prospective franchisees in Maryland to agree to a release, estoppel, or waiver of liability will not act as a release, estoppel, or waiver of liability regarding claims under the Maryland Franchise Registration and Disclosure Law. This provision is designed to protect the rights of franchisees in Maryland under state franchise law.

This means that even if an All County franchisee in Maryland signs documents that appear to release the franchisor from certain liabilities, those releases will not be valid for claims arising under Maryland's franchise laws. This ensures that franchisees retain their legal rights and recourse under Maryland law, regardless of any potentially conflicting language in the franchise agreement or related documents.

Furthermore, the addendum explicitly states that any general release required in the Franchise Agreement as a condition of renewal, sale, assignment, or transfer does not apply to any liability under the Maryland Franchise Registration and Disclosure Law. This reinforces the protection for franchisees, ensuring they cannot be forced to waive their rights under Maryland law to renew their franchise or transfer it to someone else. Additionally, no statement, questionnaire, or acknowledgment signed by the franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by All County or its representatives. This provision supersedes any other conflicting terms in any document related to the franchise agreement.

In practical terms, this addendum provides significant protection for All County franchisees in Maryland, ensuring that their rights under Maryland franchise law are preserved and cannot be inadvertently or intentionally waived through standard contract clauses. Prospective franchisees in Maryland should carefully review this addendum and understand its implications for their legal rights and obligations.