For All County franchises in Maryland, what is the effect of a franchisee signing a statement?
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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- 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 in Maryland, any statement, questionnaire, or acknowledgment signed by a franchisee at the start of the franchise relationship does not waive claims under state franchise law. This includes claims related to fraud in the inducement. Additionally, these documents cannot disclaim reliance on statements made by All County, franchise sellers, or anyone acting on All County's behalf. This provision overrides any conflicting terms in any document signed in connection with the franchise.
This means that even if an All County franchisee in Maryland signs a document that appears to waive certain rights or acknowledges reliance on certain information, those waivers or acknowledgments are not enforceable under Maryland franchise law. The franchisee retains the right to pursue claims against All County for violations of state franchise law, including claims of fraud, regardless of what the signed documents state.
This protection is specific to Maryland franchise law and aims to safeguard franchisees from inadvertently relinquishing their legal rights through standard form agreements. It ensures that All County franchisees in Maryland can hold the franchisor accountable for any misrepresentations or violations of franchise law, even if they have signed documents that seem to suggest otherwise. This addendum is designed to comply with Maryland statutes and regulations, amending the standard franchise agreement to reflect these protections.