factual

Are representations requiring a Best Brains franchisee to release liability intended to act as a waiver under the Maryland Franchise Registration and Disclosure Law?

Best_Brains Franchise · 2025 FDD

Answer from 2025 FDD Document

If any of the terms of the Franchise Agreement are inconsistent with the terms below, the terms below control.

    1. Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise.
    1. A franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
    1. A Release required as a condition of renewal, sale, and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
    1. 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.
      1. Section 22 of the Franchise Agreement, titled "Acknowledgments," is deleted.
    1. 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 42–190)

What This Means (2025 FDD)

According to the 2025 Best Brains Franchise Disclosure Document, for franchisees operating in Maryland, any representations that require prospective franchisees to agree to a release, estoppel, or waiver of liability are not intended to, nor will they act as, a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. This means that Best Brains franchisees in Maryland retain their rights and protections under this law, regardless of any general release or waiver clauses in the franchise agreement.

This provision ensures that Best Brains franchisees in Maryland cannot be forced to give up their legal rights under the Maryland Franchise Registration and Disclosure Law through standard contract terms. It specifically protects franchisees from inadvertently waiving their rights when signing the franchise agreement or related documents.

Furthermore, the Best Brains FDD states that any statement, questionnaire, or acknowledgment signed by a franchisee in connection with starting the franchise will not waive claims under any applicable state franchise law, including claims of fraud in the inducement, or disclaim reliance on statements made by the franchisor. This reinforces the protection for franchisees against unknowingly relinquishing their rights or claims. Section 22 of the Franchise Agreement, titled "Acknowledgments," is deleted for Maryland franchisees, further emphasizing this point.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.