For Batteries Plus Bulbs franchises in Maryland, what effect do statements or acknowledgements signed by the franchisee have on waiving claims under state franchise law?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
MARYLAND ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT
The following information applies to franchises and franchisees subject to Maryland statutes and regulations. Item numbers correspond to those in the main body:
1. Item 22.
The Franchise Agreement requires the franchisee to sign a general release as a condition of renewal, sale, or assignment of the franchise. This release may not apply to any liability under the Maryland Franchise Registration and Disclosure Law. The form of release that you must sign in those situations will be substantially similar to the form included at the end of Exhibit F to the Franchise Disclosure Document.
2. Exhibit G.
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.
MARYLAND ADDENDUM TO MULTIPLE UNIT FRANCHISE AGREEMENT
This Addendum relates to franchises sold in Maryland and is intended to comply with Maryland statutes and regulations. In consideration of the execution of the Multiple Unit Franchise Agreement (the "Agreement"), Franchisor and Multiple Unit Franchisee agree to amend the Agreement as follows:
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- Venue. Section 18(D) of the Agreement is deleted.
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- Acknowledgments. Section 20 of the Agreement is deleted. 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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- Construction. In all other respects, the Multiple Unit Franchise Agreement will be construed and enforced with its terms.
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 49–53)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs Franchise Disclosure Document, any statements, questionnaires, or acknowledgments signed by a franchisee in Maryland at the start of their franchise relationship do not waive claims under Maryland franchise law. This includes claims of fraud in the inducement or disclaiming reliance on statements made by Batteries Plus Bulbs or its representatives. This provision overrides any conflicting terms in any document related to the franchise agreement. This protection is also included in the Maryland Addendum to the Multiple Unit Franchise Agreement.
This means that even if a franchisee signs a document that appears to waive their rights, that waiver will not be enforceable under Maryland law regarding franchise claims. This is a significant protection for franchisees, ensuring they can pursue legal action if they believe they were misled or defrauded, regardless of any initial agreements.
For a prospective Batteries Plus Bulbs franchisee in Maryland, this addendum offers reassurance that their legal rights under state franchise law are preserved. They cannot inadvertently waive these rights through standard acknowledgments or questionnaires at the beginning of their franchise journey. This protection helps to balance the power dynamic between the franchisor and franchisee, ensuring that Batteries Plus Bulbs franchisees can hold the company accountable for its representations and conduct.
It is important for prospective franchisees to carefully review the Maryland Addendum and understand their rights under Maryland franchise law. Consulting with an attorney experienced in franchise law is advisable to fully grasp the implications of these protections and to ensure that their interests are adequately represented.