Regarding Beverly Anns Cookie franchises, are representations requiring prospective franchisees to assent to a release, estoppel, or waiver of liability intended to act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Agreement and Franchise Disclosure Questionnaire are amended to state that 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.
Item 17 of the FDD and sections of the Franchise Agreement are amended to state that you may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the Franchise.
The Franchise Agreement provides for termination upon bankruptcy. This provision may not be enforceable under Federal Bankruptcy Law (11 U.S.C.A Sec. 101 et seq.).
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 57–235)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, specific amendments are made to the franchise agreement concerning liability under Maryland law. For franchisees in Maryland, any representations that require them to agree to a release, estoppel, or waiver of liability are explicitly stated not to function as a release, estoppel, or waiver regarding any liability incurred under the Maryland Franchise Registration and Disclosure Law. This amendment ensures that franchisees do not inadvertently waive their rights under Maryland franchise law through standard agreement clauses.
This protection for Beverly Anns Cookie franchisees in Maryland extends to the ability to bring lawsuits in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. However, any such claims must be initiated within three years after the franchise is granted. This provision clarifies the franchisee's legal recourse and sets a time limit for action, providing a defined window for addressing grievances under Maryland law.
Furthermore, the franchise agreement's provision for termination upon bankruptcy may not be enforceable under Federal Bankruptcy Law. Additionally, no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor. This aspect supersedes any conflicting terms in documents related to the franchise, reinforcing the franchisee's rights and protections under state laws.