In Maryland, can a Body20 franchisee disclaim reliance on any statement made by the franchisor, franchise seller, or anyone acting on their behalf, in connection with the commencement of the franchise relationship?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
18.6 No Waiver or Disclaimer of Reliance in Certain States. The following provision applies only to franchisees and Studios that are subject to the state franchise disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin:
No statement, questionnaire, or acknowledgement signed or agreed to by you 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 us, any franchise seller, or any other person acting on behalf of us. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, if you are a franchisee in Maryland, any statement, questionnaire, or acknowledgement signed in connection with starting the franchise relationship cannot waive claims under Maryland franchise law or disclaim reliance on statements made by Body20, its franchise sellers, or anyone acting on their behalf. This means that even if a franchisee signs a document that seems to disclaim reliance on certain statements, that disclaimer will not be effective under Maryland law. This provision takes precedence over any other conflicting terms in any document related to the franchise agreement.
This protection is specifically included because Maryland is one of the states with franchise disclosure laws that aim to protect franchisees. The FDD highlights that this clause is designed to prevent Body20 from enforcing waivers that could limit a franchisee's rights to bring claims, including claims of fraud.
For a prospective Body20 franchisee in Maryland, this is a beneficial provision. It ensures that you cannot inadvertently waive your rights or be prevented from claiming reliance on representations made by the franchisor during the franchise sales process. This helps maintain transparency and accountability in the franchise relationship, safeguarding the franchisee's ability to seek legal recourse if necessary.