For Alloy franchises in Maryland, can a disclaimer signed by a franchisee waive any claim of fraud in the inducement?

According to Alloy's 2025 Franchise Disclosure Document, specifically the addendum for Maryland franchisees, a disclaimer, questionnaire, clause, or statement signed by a franchisee cannot waive claims of fraud in the inducement. This protection applies whether the fraud claim is based on common law or statutory grounds. It also ensures that franchisees cannot disclaim reliance on statements or information provided by Alloy, its brokers, or representatives if that information materially induced the franchisee's investment. This provision takes precedence over any conflicting terms in any document related to the franchise agreement.

This means that even if an Alloy franchisee in Maryland signs a document that appears to waive their right to sue for fraud based on Alloy's representations, that waiver will not be legally enforceable. The franchisee retains the right to bring a claim for fraud in the inducement if they believe they were misled into investing in the franchise. This protection is designed to prevent franchisors from using disclaimers to shield themselves from liability for fraudulent statements or omissions.

This type of protection is not universally included in franchise agreements across all states, so it represents a significant benefit for Alloy franchisees in Maryland. It ensures that they can rely on the information provided by Alloy during the franchise sales process and that they have legal recourse if that information turns out to be false or misleading. Prospective franchisees should carefully review the Maryland addendum to the franchise agreement to fully understand their rights and protections under Maryland law.