What is the implication if an All County franchisee in Maryland signs an acknowledgement?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
Dated: As Individuals: Do not sign this Acknowledgment Addendum if you are a resident of Maryland or the business is to be operated in Maryland.
Acknowledgments and Representations.
As you know, you and we are entering into a Franchise Agreement for the operation of an ALL COUNTY® franchise. The purpose of this Acknowledgment Addendum is to determine whether any statements or promises were made to you that we have not authorized or that may be untrue, inaccurate or misleading, and to be certain that you understand the limitations on claims that may be made by you by reason of the offer and sale of the franchise and operation of your business. Please review each of the following questions carefully and provide honest responses to each question. 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, franchisees who are residents of Maryland or intend to operate their All County franchise in Maryland should not sign the standard acknowledgement addendum. This is because Maryland law provides specific protections to franchisees, and the standard acknowledgement might inadvertently lead to a waiver of rights under the Maryland Franchise Registration and Disclosure Law.
Specifically, the FDD states that any acknowledgements signed by a franchisee in connection with starting the franchise will not waive claims under Maryland franchise law, including claims related to fraud. It also clarifies that these acknowledgements cannot disclaim reliance on statements made by All County or its representatives. This provision is designed to override any conflicting terms in other franchise documents.
Furthermore, the addendum for Maryland franchisees amends the standard franchise agreement to ensure compliance with Maryland statutes and regulations. This includes allowing franchisees to bring lawsuits in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law and setting a three-year statute of limitations for such claims. These stipulations ensure that Maryland franchisees retain their legal rights and recourse options under state law, regardless of any standard acknowledgements they might be asked to sign.
In essence, the Maryland addendum and the instruction not to sign the standard acknowledgement are in place to protect the franchisee's rights under Maryland law, preventing unintentional waivers or limitations of those rights through standard franchise documents. This ensures that Maryland franchisees have the full legal protections afforded to them by the state.