factual

What is the effect of the amendment on any other term of any document executed in connection with the Amorino franchise?

Amorino Franchise · 2025 FDD

Answer from 2025 FDD Document

"No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee 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 any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise."

Source: Item 22 — CONTRACTS (FDD pages 80–81)

What This Means (2025 FDD)

According to the 2025 Amorino FDD, an amendment to the franchise agreement addresses statements, questionnaires, or acknowledgments signed by a franchisee at the start of their franchise relationship. Specifically, such documents cannot waive claims under state franchise law, including claims related to fraud in the inducement, or disclaim reliance on statements made by Amorino or its representatives. This amendment is explicitly designed to override any conflicting terms in other documents associated with the franchise agreement.

This means that even if a franchisee signs a document that appears to waive certain rights or claims, this amendment ensures that those waivers are not enforceable, particularly concerning state franchise law and reliance on franchisor statements. This provision aims to protect franchisees from inadvertently relinquishing legal rights during the initial stages of the franchise relationship.

Furthermore, the amendment includes specific clauses related to releases required for renewal, assignment, or transfer of the franchise. These releases will not apply to liabilities arising under the Maryland Franchise Registration and Disclosure Law. Additionally, franchisees are permitted to bring lawsuits in Maryland for claims under this law, provided they do so within three years of the franchise grant. This offers additional protection and recourse for Amorino franchisees specifically within Maryland.

In essence, this amendment strengthens franchisee protections by preventing unintentional waivers of rights and providing a specific avenue for legal recourse under Maryland franchise law. It clarifies the relationship between various documents executed in connection with the franchise, ensuring that franchisees retain certain legal protections regardless of potentially conflicting terms in other agreements.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.