For Bambu franchises in Maryland, can a franchisee waive claims under applicable state franchise law, including fraud in the inducement, through any statement, questionnaire, or acknowledgment?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, franchisees in Maryland are protected from unintentionally waiving their rights under Maryland franchise law. Specifically, no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under applicable state franchise law, including claims of fraud in the inducement. This protection is in place to ensure that franchisees are not pressured into giving up their legal rights at the start of their franchise relationship. This provision overrides any conflicting terms in any document related to the franchise agreement.
This means that even if a document contains language that seems to waive a franchisee's rights, that language will not be enforceable under Maryland law. This safeguard is particularly important because franchise agreements often contain numerous documents and legal jargon, making it easy for franchisees to inadvertently waive important rights. The inclusion of this provision demonstrates an effort to protect franchisees from unintentionally relinquishing their legal recourse.
This protection for Maryland franchisees is a significant benefit, as it ensures they retain their rights under the Maryland Franchise Registration and Disclosure Law. It prevents Bambu from using standard form documents to circumvent state law and ensures that franchisees can pursue legal claims if necessary. This provision offers added security and reinforces the importance of understanding one's rights when entering into a franchise agreement.