For All County franchises in Maryland, what is the effect of a franchisee signing a release?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
The following applies to franchises and franchisees subject to Maryland statutes and regulations. Item numbers correspond to those in the main body:
Item 17.
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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 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, several provisions protect franchisees in Maryland regarding releases and waivers of liability. Specifically, any general release required as a condition of renewal, sale, assignment, or transfer of the franchise does not apply to liabilities arising under the Maryland Franchise Registration and Disclosure Law. This means that even if a franchisee signs a general release, they do not waive their rights to make claims under this specific Maryland law.
Furthermore, any statements, questionnaires, or acknowledgments signed by a franchisee at the start of the franchise relationship cannot waive claims under any applicable state franchise law, including claims of fraud in the inducement. These documents also cannot disclaim reliance on statements made by All County, its franchise sellers, or anyone acting on their behalf. This provision overrides any conflicting terms in other documents related to the franchise agreement.
In essence, All County franchisees in Maryland retain their rights under the Maryland Franchise Registration and Disclosure Law, regardless of any general releases, statements, questionnaires, or acknowledgments they may sign. This protection ensures that franchisees can pursue claims related to franchise law violations, including fraud, without being barred by waivers or releases.