For Best Brains franchises in Maryland, what is the effect of a statement, questionnaire, or acknowledgment signed by a franchisee regarding waiving claims under applicable state franchise law?
Best_Brains 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 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, any statement, questionnaire, or acknowledgment signed by a Best Brains franchisee in Maryland at the start of their franchise relationship cannot waive claims under Maryland franchise law. This includes claims related to fraud in the inducement or disclaiming reliance on statements made by Best Brains or its representatives. This protection is specifically outlined in the Maryland Addendum to the Disclosure Document.
This provision is significant for prospective Best Brains franchisees in Maryland because it ensures that they retain their legal rights under state franchise law, regardless of any documents they may sign when starting the franchise. It prevents Best Brains from using standard form agreements to inadvertently or intentionally strip franchisees of their legal recourse. This protection extends to claims of fraud, ensuring franchisees can hold Best Brains accountable for misrepresentations made during the franchise sales process.
This type of provision is not uncommon in franchise agreements, as many states have franchise laws designed to protect franchisees from overreaching by franchisors. The inclusion of this clause in the Maryland Addendum reinforces the state's commitment to franchisee protection. It also clarifies that this provision overrides any conflicting terms in other franchise documents, providing additional assurance to franchisees.
In practical terms, this means that if a Best Brains franchisee in Maryland believes they were misled or defrauded during the franchise sales process, they can pursue legal action against Best Brains, even if they signed a document that appeared to waive such claims. This protection helps to level the playing field between franchisors and franchisees, ensuring that franchisees have a meaningful opportunity to seek redress for any wrongdoing.