Under the Maryland Franchise Registration and Disclosure Law, are Aplus franchisees required to assent to any release, estoppel, or waiver of liability as a condition of purchasing the franchise?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
hisee may have under the Maryland Franchise Registration and Disclosure Law to bring suit in the State of Maryland.
- Any Section of the Franchise 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 24.4 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.
-
- Any portion of the Franchise 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.
-
- 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 Franchise 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 section of the Franchise Agreement or Development Agreement requiring a franchisee to assent to any 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 is specifically designed to align with the requirements of Maryland law. This means that while the franchise agreement might contain clauses that appear to require such waivers, these clauses will not be enforced in Maryland to the extent that they conflict with Maryland's franchise law.
This provision ensures that Aplus franchisees in Maryland retain their rights and protections under the Maryland Franchise Registration and Disclosure Law, regardless of any potentially conflicting terms in the franchise agreement. It prevents Aplus from using standard contract language to inadvertently or intentionally limit a franchisee's ability to pursue claims under Maryland law. The FDD also states that 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.
For a prospective Aplus franchisee in Maryland, this is a beneficial safeguard. It means that even if the franchise agreement seems to ask for a broad release of liability, that release will not prevent the franchisee from bringing claims related to violations of Maryland franchise law. This assurance helps to create a more equitable balance between the franchisor and franchisee, ensuring that franchisees are not unknowingly giving up their legal rights. This protection is particularly important during the initial purchase of the franchise, where franchisees might be less aware of their rights and more susceptible to contractual terms that could be detrimental to them.
It is important for prospective Aplus franchisees in Maryland to carefully review the franchise agreement and any related documents with legal counsel to fully understand their rights and obligations. While the FDD provides some assurance that waivers of liability are not enforceable under Maryland law, a legal professional can provide specific advice tailored to the franchisee's situation and ensure that all necessary protections are in place.