For All County franchises in Maryland, what is the effect of a franchisee signing a waiver of liability?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
This Addendum pertains to residents of the State of Maryland and franchises to be located in the State of Maryland and is for the purpose of complying with Maryland statutes and regulations. Notwithstanding anything which may be contained in the body of the Franchise Agreement to the contrary, the Agreement is amended as follows:
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- Article 1.1 of the Franchise Agreement is deleted in its entirety.
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- Article 25.14 is amended to provide that you may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
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- Article 25.17 is amended to provide that any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the Franchise Agreement.
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- All representations requiring prospective franchisees to assent to a release, estoppel or waiver of liability are not intended to nor shall they act as a release, estoppel or waiver of liability incurred under the Maryland Franchise Registration and Disclosure Law.
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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 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 All County's 2025 Franchise Disclosure Document, several provisions protect franchisees in Maryland from unknowingly waiving their rights under the Maryland Franchise Registration and Disclosure Law. Specifically, any representations requiring prospective franchisees to agree to a release, estoppel, or waiver of liability will not act as a release, estoppel, or waiver of liability incurred under the Maryland Franchise Registration and Disclosure Law. This means that even if a franchisee signs a document that appears to waive their rights, it will not be legally binding regarding claims under this specific Maryland law.
Furthermore, any general release required in the Franchise Agreement as a condition of renewal, sale, assignment, or transfer will not apply to any liability under the Maryland Franchise Registration and Disclosure Law. This ensures that franchisees cannot be forced to waive their rights under this law to, for example, sell their franchise. Additionally, any statement, questionnaire, or acknowledgment signed by a franchisee at the start of the franchise relationship will not waive claims under any applicable state franchise law, including claims of fraud in the inducement, or disclaim reliance on statements made by All County or its representatives. This provision overrides any other conflicting terms in any document related to the franchise agreement.
In practical terms, these stipulations provide significant protection for All County franchisees in Maryland. They ensure that franchisees retain their legal rights under Maryland franchise law, regardless of any waivers or releases they may have signed. This is particularly important in cases where franchisees believe they have been misled or defrauded by All County. These protections help to create a fairer balance of power between the franchisor and franchisee, ensuring that franchisees are not easily deprived of their legal recourse.