For Basecamp Fitness franchises in Maryland, what effect do statements, questionnaires, or acknowledgments signed by a franchisee NOT have regarding claims under state franchise law or reliance on franchisor statements?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- Exhibit K (Franchisee Questionnaire) to the Franchise Disclosure Document is revised to include the following language:
All representations requiring prospective franchisees to assent to a release, estoppel or waiver of liability 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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- 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.
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- Each provision of this Addendum to the FDD shall be effective only to the extent that, with respect to such provision, the jurisdictional requirements of the Maryland Franchise Registration and Disclosure Law are met independently without reference to this Addendum.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 51–55)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, specifically the Maryland Addendum, certain statements made by franchisees do not waive rights. For Basecamp Fitness franchises sold to residents in Maryland, no statement, questionnaire, or acknowledgment signed by a franchisee in connection with starting the franchise can waive claims under Maryland franchise law. This includes claims of fraud. These documents also cannot disclaim reliance on statements made by Basecamp Fitness, its franchise sellers, or anyone acting on the company's behalf.
This provision is designed to protect franchisees in Maryland. It ensures that franchisees cannot inadvertently give up their legal rights or claims due to signing a document at the beginning of their franchise relationship. This protection is particularly important in cases where a franchisee might claim they were misled or defrauded during the franchise sales process.
Furthermore, this specific provision overrides any other conflicting terms in any document related to the franchise agreement. This means that even if another part of the agreement seems to suggest that a franchisee is waiving certain rights, this Maryland-specific addendum takes precedence, reinforcing the protection for the franchisee under Maryland law.
Each provision of the addendum is effective only if the jurisdictional requirements of the Maryland Franchise Registration and Disclosure Law are met independently, without relying on the addendum itself. This ensures that the protections are firmly grounded in Maryland law.