For Beef O Bradys franchisees in Maryland, what effect does a signed statement, questionnaire, or acknowledgment NOT have?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
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 66–330)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, a signed statement, questionnaire, or acknowledgment by a franchisee in Maryland does not waive claims under Maryland franchise law, including fraud in the inducement. It also does not disclaim reliance on statements made by Beef O Bradys, its sellers, or representatives. This protection is in place due to state franchise disclosure laws. This provision overrides any conflicting terms in the franchise agreement.
This means that even if a Beef O Bradys franchisee in Maryland signs a document that appears to waive their rights or disclaim reliance on the franchisor's statements, those waivers or disclaimers will not be legally effective under Maryland law. This protects franchisees from inadvertently giving up their legal rights during the franchise commencement.
This safeguard is particularly important because franchise agreements often contain language that could be interpreted as limiting a franchisee's ability to sue the franchisor. However, in states like Maryland with franchise-specific laws, these clauses are often unenforceable to the extent that they conflict with state law. Prospective Beef O Bradys franchisees in Maryland should be aware of this protection and consult with an attorney to fully understand their rights under the franchise agreement and Maryland law.