For an Aplus franchise, does the Maryland Amendment allow any section of the Franchise Agreement to act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
on to be conducted in the State of Texas; the requirement shall not limit any rights Franchisee may have under the Maryland Franchise Registration and Disclosure Law to bring suit in the State of Maryland.
- Any Section of the Development Agreement requiring Franchisee to assent to any release, estoppel or waiver of liability as a condition of purchasing the Franchise are not intended to, nor shall they act as a, release, estoppel or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.
- Section 14.6 is amended to the extent that any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the Franchise.
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Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the Maryland Amendment ensures that no part of the Franchise Agreement can act as a release, estoppel, or waiver of liability regarding the Maryland Franchise Registration and Disclosure Law. This protection is specifically designed to safeguard franchisees' rights under Maryland law.
The amendment explicitly states that any section of the Development Agreement requiring a franchisee to consent to a release, estoppel, or waiver of liability as a condition of purchasing the franchise is not intended to, and will not, act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. This provision aims to prevent Aplus from using the Franchise Agreement to circumvent Maryland's franchise laws.
Furthermore, any part of the Development Agreement that requires prospective franchisees to disclaim the occurrence or acknowledge the non-occurrence of certain acts will not act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. This ensures that franchisees cannot inadvertently waive their rights through specific disclaimers or acknowledgments within the agreement.
In practical terms, this means that if an Aplus franchisee in Maryland believes the franchisor has violated the Maryland Franchise Registration and Disclosure Law, the franchisee can pursue legal action without being barred by clauses in the Franchise Agreement that might otherwise limit their ability to sue. This amendment strengthens the franchisee's position and ensures compliance with Maryland law.