Does the All County Franchise Agreement for Maryland allow disclaiming reliance on statements made by the franchisor?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
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 the 2025 All County Franchise Disclosure Document, the Franchise Agreement for Maryland does not allow franchisees to disclaim reliance on statements made by the franchisor. Specifically, any statement, questionnaire, or acknowledgment signed by a franchisee cannot waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by All County, its franchise seller, or anyone acting on their behalf. This provision overrides any conflicting terms in any document related to the franchise.
This protection is significant for prospective All County franchisees in Maryland. It means that if a franchisee believes they were misled by statements made by All County during the franchise sales process, they are not prevented from pursuing legal action based on those misrepresentations, even if they signed documents that appear to disclaim reliance on those statements. This ensures that franchisees can hold All County accountable for the accuracy and truthfulness of the information provided during the franchise sales process.
This type of provision is designed to protect franchisees from overreaching by franchisors and to ensure a fair and transparent franchise sales process. It reflects a recognition that franchisees may be less sophisticated than franchisors and may be vulnerable to misleading or inaccurate information. By prohibiting disclaimers of reliance, Maryland law aims to create a more level playing field and to encourage franchisors to provide accurate and complete information to prospective franchisees.
It is important for prospective All County franchisees in Maryland to understand this protection and to carefully document all statements and representations made by All County during the franchise sales process. This documentation could be critical in the event that the franchisee later believes they were misled and seeks to pursue legal action.