Does any representation requiring prospective All County franchisees to assent to a release act as a waiver of liability under the Maryland Franchise Registration and Disclosure Law?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
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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, any representations that require prospective franchisees in Maryland to agree to a release, estoppel, or waiver of liability will not act as a release, estoppel, or waiver of liability related to the Maryland Franchise Registration and Disclosure Law. This protection ensures that franchisees do not inadvertently forfeit their rights under Maryland franchise law when signing agreements or acknowledgments related to the franchise. This applies to all representations, questionnaires, or acknowledgments signed during the commencement of the franchise relationship.
This provision is specifically designed to comply with Maryland statutes and regulations, as stated in the addendum to the Franchise Agreement for the State of Maryland. The addendum amends the franchise agreement to ensure franchisees may bring lawsuits in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law and that any such claims must be brought within 3 years after the grant of the Franchise Agreement.
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 retain their rights and protections under Maryland law throughout the duration of their franchise agreement and during any potential transfer or renewal processes.