What is the effect of the All County Franchise Agreement addendum for Maryland on representations requiring prospective franchisees to assent to a waiver of liability?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
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)
According to All County's 2025 Franchise Disclosure Document, the addendum to the franchise agreement for the state of Maryland addresses waivers of liability. Specifically, any representations that require prospective franchisees to agree to a release, estoppel, or waiver of liability will not act as a release, estoppel, or waiver of liability related to the Maryland Franchise Registration and Disclosure Law. This means that while the standard franchise agreement might contain clauses that seem to limit All County's liability, these clauses are superseded by Maryland law, offering franchisees in Maryland additional protection.
This provision ensures that All County franchisees in Maryland retain their rights under Maryland's franchise laws, regardless of any potentially conflicting language in the standard franchise agreement. This protection extends to claims arising from the Maryland Franchise Registration and Disclosure Law. The addendum also clarifies that any general release required for renewal, sale, assignment, or transfer of the franchise will not apply to liabilities under the Maryland Franchise Registration and Disclosure Law.
Furthermore, the addendum states that no statement, questionnaire, or acknowledgment signed by the franchisee can waive claims under Maryland franchise law, including claims of fraud in the inducement, or disclaim reliance on statements made by All County or its representatives. This provision is designed to prevent All County from using standard documents to circumvent Maryland's franchise regulations and ensures that franchisees' rights are fully protected under state law. This protection is significant for prospective franchisees in Maryland, as it reinforces their legal standing and recourse in case of disputes or misrepresentations.