If any portion of the Aplus Development Agreement requires prospective franchisees to disclaim the occurrence of acts that would violate the Maryland Franchise Registration and Disclosure Law, what is the effect of such representations?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Any portion of the Development Agreement which requires prospective franchisees to disclaim the occurrence and/or acknowledge the non-occurrence of acts would constitute a violation of the Maryland Franchise Registration and Disclosure Law. Any such representations 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.
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- Each provision of this Amendment shall be effective only to the extent that the jurisdictional requirements of the Maryland Franchise Registration and Disclosure Law applicable to the provisions are met independently of this Amendment. To the extent this Amendment shall be deemed to be inconsistent with any terms or conditions of said Development Agreement or exhibits or attachments thereto, the terms of this Amendment shall govern.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, any part of the Development Agreement that compels prospective franchisees to deny actions that would breach the Maryland Franchise Registration and Disclosure Law will not be enforced as a release, estoppel, or waiver of liability under that law. This means that Aplus franchisees in Maryland cannot be forced to waive their rights or claims under Maryland franchise law as a condition of purchasing the franchise.
This provision protects prospective Aplus franchisees by ensuring that they cannot be compelled to disclaim actions that would violate Maryland law. It also ensures that franchisees retain their rights and remedies under the Maryland Franchise Registration and Disclosure Law, regardless of any conflicting provisions in the Development Agreement.
This protection is further reinforced by the statement that the terms of the amendment to the Development Agreement will govern if there are any inconsistencies with the original agreement or its exhibits, but only to the extent that the jurisdictional requirements of the Maryland Franchise Registration and Disclosure Law are independently met. This ensures that Maryland law takes precedence in relevant matters, safeguarding the franchisee's rights within the state.