For All County franchises in Maryland, do representations requiring franchisees to release liability act as a release under the Maryland Franchise Registration and Disclosure Law?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, representations requiring prospective franchisees to release, estop, or waive liability do not act as a release, estoppel, or waiver of liability incurred under the Maryland Franchise Registration and Disclosure Law. This protection is specifically designed to ensure that franchisees operating in Maryland retain their rights and remedies under Maryland franchise law, regardless of any general releases or waivers they may sign as part of the franchise agreement. This provision is included in an addendum to the franchise agreement specifically for Maryland franchisees to comply with Maryland statutes and regulations.
This means that even if an All County franchisee in Maryland signs documents that appear to release the franchisor from liability, those releases will not be effective concerning claims arising under Maryland's franchise laws. This safeguard is particularly relevant in the context of franchise renewals, sales, assignments, or transfers, where general releases are often required. The addendum ensures that these releases do not inadvertently waive the franchisee's rights under Maryland law.
Furthermore, any statement, questionnaire, or acknowledgment signed by the franchisee at the start of the franchise relationship cannot 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 reinforces the franchisee's ability to pursue legal remedies if they believe they were misled or defrauded during the franchise sales process. This protection supersedes any conflicting terms in other documents related to the franchise agreement, providing a clear and enforceable standard for Maryland franchisees.