What effect do representations requiring a release, estoppel, or waiver of liability have under the Maryland Franchise Registration and Disclosure Law for Best Western?

According to Best Western's 2025 Franchise Disclosure Document, any representations that require a franchisee in Maryland to agree to a release, estoppel, or waiver of liability do not act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. This protection is specifically included in a rider to the standard Best Western Membership Agreement for use in Maryland. This ensures that franchisees do not inadvertently forfeit their rights under Maryland franchise law through standard agreement clauses.

This provision is beneficial for prospective Best Western franchisees in Maryland as it prevents the franchisor from enforcing waivers or releases that would undermine the protections provided by Maryland's franchise laws. It ensures that franchisees retain their legal rights and remedies under state law, regardless of any conflicting language in the franchise agreement. This is particularly important in the context of franchise agreements, which often contain complex legal terms and conditions that may be difficult for franchisees to fully understand.

Furthermore, the Best Western FDD includes a general provision applicable in several states, including Maryland, stating that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including claims of fraud in the inducement, or disclaim reliance on statements made by the franchisor. This provision reinforces the protection of franchisees' rights and ensures that they cannot be compelled to relinquish their legal recourse through standard documentation.

In practical terms, this means that if a Best Western franchisee in Maryland believes they have a claim under the Maryland Franchise Registration and Disclosure Law, they are not prevented from pursuing that claim simply because they signed an agreement containing a general release or waiver. This protection helps to level the playing field between franchisors and franchisees, ensuring that franchisees are not unfairly disadvantaged by contractual terms.