For All County franchises in Maryland, what is the effect of a franchisee signing an estoppel?
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, for franchises located in Maryland, any representation, questionnaire, or acknowledgment signed by a franchisee at the start of the franchise relationship will not waive claims under Maryland franchise law. This includes claims of fraud. It also means that franchisees cannot disclaim reliance on statements made by All County, its franchise sellers, or anyone acting on All County's behalf. This provision overrides any conflicting terms in any document related to the franchise agreement.
In practical terms, this means that if an All County franchisee in Maryland signs a document that appears to waive their rights or acknowledge certain facts, that document will not prevent them from pursuing claims under Maryland's franchise laws. This protection extends to claims of fraud, ensuring that franchisees are not bound by acknowledgments that could limit their ability to seek legal recourse if they believe they were misled during the franchise sales process.
This provision is specific to Maryland and aims to protect franchisees from inadvertently waiving their rights under state franchise law. Prospective All County franchisees in Maryland should be aware of this protection and understand that any acknowledgments or representations they make will not prevent them from pursuing legal claims related to the franchise agreement.