What is the effect of the All County Franchise Agreement addendum for Maryland on representations requiring prospective franchisees to assent to a release, estoppel or 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.
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- Any general release required in the Franchise Agreement as a condition of renewal, sale, and/or assignment or transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
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- No statement, questionnaire, or acknowledgement signed or agreed to by you 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 us, any franchise seller, or any other person acting on our behalf. This provision supersedes any other term of any document executed in connection with the franchise.
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 representations requiring prospective franchisees to agree to a release, estoppel, or waiver of liability. Specifically, such representations will not act as a release, estoppel, or waiver of liability incurred under the Maryland Franchise Registration and Disclosure Law. This provision is designed to protect franchisees in Maryland from inadvertently waiving their rights under Maryland franchise law.
This means that any agreement a prospective All County franchisee in Maryland signs that appears to release All County from liability under Maryland's franchise laws will not be legally binding. This protection extends to the Maryland Franchise Registration and Disclosure Law, ensuring that franchisees retain their rights to pursue claims under this law.
Furthermore, any general release required in the Franchise Agreement as a condition of renewal, sale, assignment, or transfer will not apply to any liability under the Maryland Franchise Registration and Disclosure Law. This ensures that franchisees cannot be forced to waive their rights under Maryland franchise law in order to renew their franchise agreement or sell their business. Also, no statement, questionnaire, or acknowledgment signed by the franchisee can waive claims under state franchise law, including fraud, 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.