Under Maryland law, can acknowledgements made by a Belocal franchisee act as a release of liability incurred under the Maryland Franchise Registration and Disclosure Law?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- b. Any acknowledgments or representations of Franchisee made in the Agreement which disclaim the occurrence and/or acknowledge the non-occurrence of acts that would constitute a violation of the Law are not intended to, nor will they, act as a release, estoppel, or waiver of any liability incurred under the Law.
- c. A Franchisee may bring a lawsuit in Maryland for claims arising under the Law to the extent required by the Law, unless preempted by the Federal Arbitration Act.
- d. The limitation on the period of time when mediation and/or arbitration claims must be brought will not act to reduce the three-year statute of limitations afforded Franchisee for bringing a claim arising under the Law. Any claims arising under the Law must be brought within three years after the grant of the franchise.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, acknowledgments or representations made by a franchisee within the franchise agreement do not act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. This protects the franchisee from unintentionally relinquishing their rights under Maryland law through statements made in the agreement.
This provision ensures that Belocal franchisees retain their legal rights and protections under Maryland's franchise laws. It prevents Belocal from using franchisee acknowledgments to circumvent liability for violations of the Maryland Franchise Registration and Disclosure Law. This is particularly relevant during the commencement of the franchise relationship when franchisees might not fully understand the implications of every clause in the agreement.
Furthermore, the FDD states that a franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law to the extent required by the Law, unless preempted by the Federal Arbitration Act. Any claims arising under the Law must be brought within three years after the grant of the franchise. This reinforces the franchisee's right to seek legal recourse in Maryland within the specified timeframe, regardless of any acknowledgments made in the agreement.