For Atwell Suites franchises subject to Maryland Franchise Registration and Disclosure Law, what statements, questionnaires, or acknowledgments are prohibited from waiving claims or disclaiming reliance on franchisor statements, according to the Interpretive Opinion?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Pursuant to the Interpretive Opinion "Adopting NASAA Statement of Policy Regarding the Use of Franchise Questionnaires and Acknowledgments" dated January 23, 2023 (the "Interpretive Opinion"), issued by the State of Maryland Office of the Attorney General Securities Division (the "Division"), the Division requires franchisors selling franchises that are subject to the Maryland Franchise Registration and Disclosure Law to include the following statement in their franchise agreements: "No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor.
This provision supersedes any other term of any document executed in connection with the franchise." Accordingly, any statement, questionnaire, or acknowledgment in the License Agreement that is not permitted under the Interpretive Opinion is deleted in its entirety and shall have no force or effect.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites's 2025 Franchise Disclosure Document, specifically for franchises subject to Maryland Franchise Registration and Disclosure Law, certain statements, questionnaires, or acknowledgments are not allowed to waive claims or disclaim reliance on franchisor statements. The Interpretive Opinion, dated January 23, 2023, issued by the State of Maryland Office of the Attorney General Securities Division, states that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under any applicable state franchise law, including fraud in the inducement.
Additionally, franchisees cannot disclaim reliance on any statement made by Atwell Suites, franchise sellers, or anyone acting on behalf of Atwell Suites. This provision takes precedence over any other conflicting terms in any document related to the franchise agreement. Consequently, any statement, questionnaire, or acknowledgment within the License Agreement that does not comply with the Interpretive Opinion is considered void and without effect.
For a prospective Atwell Suites franchisee in Maryland, this means that any document they sign at the beginning of their franchise relationship cannot prevent them from pursuing legal claims against the franchisor under Maryland franchise law. This includes claims of fraud related to inducing them to invest in the franchise. Furthermore, franchisees are protected from being bound by disclaimers that would prevent them from relying on statements made by Atwell Suites during the franchise sales process. This offers a level of protection to the franchisee, ensuring they can hold Atwell Suites accountable for their representations and actions.