Under what circumstances is a Bor Restoration franchisee NOT required to indemnify Bor Restoration?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
STATE OF MARYLAND This Addendum to the Franchise Agreement, agreed to this day of, 20, between BOR Franchising, LLC and , amends and revises said Franchise Agreement as follows: a.
The Franchise Agreement requires Franchisee to sign a general release as a condition of renewal, sale, termination, and franchise transfer.
These covenants shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law. b.
A franchisee may bring a lawsuit in Maryland for claims under the Maryland Franchise Registration and Disclosure Law. c.
Any claim under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise. d.
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. e.
Based upon the franchisor's financial condition, the Maryland Securities Commissioner has required a financial assurance.
Therefore, all initial fees and payments owed by franchisees shall be deferred until the franchisor completes its pre-opening obligations under the franchise agreement. f.
To the extent this Addendum will be deemed to be inconsistent with any terms or conditions of said Franchise Agreement or exhibits or attachments thereto, the terms of this Addendum will govern. g.
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. h.
The Acknowledgements found in Article 18 of the Franchise Agreement and the Closing Acknowledgement are deleted in Maryland.
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to the 2024 Bor Restoration Franchise Disclosure Document, a franchisee is not required to provide indemnification for liabilities arising under the Maryland Franchise Registration and Disclosure Law if their franchise is located in Maryland. This is specified in an addendum to the franchise agreement for franchisees in Maryland.
Specifically, the FDD states that representations requiring prospective franchisees to assent 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 means that Bor Restoration franchisees in Maryland retain their rights and remedies under that state's franchise law, regardless of any general releases or waivers they may have signed in the franchise agreement.
This protection for Maryland franchisees extends to claims and lawsuits brought under the Maryland Franchise Registration and Disclosure Law, provided that such claims are brought within three years after the grant of the franchise. Furthermore, acknowledgements found in Article 18 of the Franchise Agreement and the Closing Acknowledgement are deleted in Maryland, reinforcing the limited applicability of certain standard clauses within that state.