What happens if any part of the Aplus Development Agreement requires prospective franchisees to disclaim or acknowledge certain acts, according to the Maryland Franchise Registration and Disclosure Law?

According to Aplus's 2024 Franchise Disclosure Document, any part of the Development Agreement that requires prospective franchisees to disclaim the occurrence or acknowledge the non-occurrence of certain acts is considered a violation of the Maryland Franchise Registration and Disclosure Law.

This means that Aplus cannot enforce any provision in the Development Agreement that forces a franchisee to deny something happened or confirm something didn't happen if it would violate Maryland law. Such representations will not act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.

In practical terms, this protects Aplus franchisees in Maryland from unknowingly giving up their rights under Maryland franchise law. It ensures that franchisees cannot be forced into a position where they inadvertently waive their legal protections or admit to something that could harm their legal standing.