Does the All County Franchise Agreement for Maryland supersede other terms regarding waivers of claims?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee 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 any franchisor, franchise seller, or other person acting on behalf of the franchisor. 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 waivers of claims. Specifically, the addendum states that no statement, questionnaire, or acknowledgment signed by a franchisee in connection with starting the franchise 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 takes precedence over any conflicting terms in any document related to the franchise agreement.
This means that even if other parts of the franchise agreement or related documents contain language that could be interpreted as a waiver of a franchisee's rights, those waivers will not be effective regarding claims arising under Maryland's franchise laws. This protection extends to claims of fraud, where a franchisee might argue they were misled into investing in the franchise.
For a prospective All County franchisee in Maryland, this addendum offers significant protection. It ensures that they cannot inadvertently waive their rights under Maryland franchise law through standard paperwork or acknowledgments. This is particularly important in the context of franchise sales, where franchisees often rely on the franchisor's representations about the business opportunity. The franchisee should consult with a legal professional to fully understand their rights and protections under Maryland law.