Are any sections of the Aplus Development Agreement requiring a release, estoppel, or waiver of liability as a condition of purchasing the franchise intended 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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- 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.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, any section of the Development Agreement that requires a franchisee to agree to a release, estoppel, or waiver of liability as a condition of purchasing the franchise is not intended to, nor shall it act as, a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. This protection ensures that franchisees in Maryland retain their rights under Maryland law, regardless of any conflicting terms in the Development Agreement.
Additionally, any part of the Development Agreement that requires potential franchisees to disclaim the occurrence or acknowledge the non-occurrence of certain acts would violate the Maryland Franchise Registration and Disclosure Law. Such representations are not intended to, nor will they 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 disclaimers to circumvent the protections afforded by Maryland law.
Furthermore, the FDD states that any provisions requiring a franchisee to sign a general release of claims against Aplus, including upon renewal, transfer, or any amendment of the Franchise Agreement and Development Agreement, do not release any claim the franchisee may have under the Maryland Franchise Registration and Disclosure Law. This ensures that franchisees' rights under Maryland law are preserved even when signing general releases for other purposes. Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise. Franchisees are also permitted to bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.