Do representations requiring prospective Buff City Soap franchisees to assent to a release, estoppel, or waiver of liability act as a release, estoppel, or waiver of liability under the Maryland Franchise Registration and Disclosure Law?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
All representations (including the Franchisee Disclosure Questionnaire) requiring prospective franchisees to assent to a release, estoppel or waiver or liability are not intended to, nor shall they act as a release, estoppel or waiver of liability incurred under the Maryland Franchise Registration and Disclosure Law.
Source: Item 17 — (r) is amended subject to Indiana Code 23-2-2.7-1(9) to provide that the post-term noncompetition covenant shall have a geographical limitation of the territory granted to Franchisee. (FDD pages 210–216)
What This Means (2025 FDD)
According to the 2025 Buff City Soap Franchise Disclosure Document, any representations requiring prospective franchisees to agree to a release, estoppel, or waiver of liability will not act as a release, estoppel, or waiver of liability under the Maryland Franchise Registration and Disclosure Law. This means that even if a franchisee signs a document that appears to waive their rights, it will not be legally binding with respect to claims arising under Maryland franchise law. This protection is specifically designed to safeguard franchisees' rights under Maryland law.
This provision ensures that Buff City Soap franchisees in Maryland retain their legal rights and remedies under the Maryland Franchise Registration and Disclosure Law, regardless of any agreements they may sign during the franchise commencement. This includes the right to bring claims for violations of the law, ensuring that franchisees are not inadvertently or unknowingly relinquishing their legal protections. The FDD explicitly states that such waivers are not intended to be effective, providing an additional layer of security for franchisees.
This type of provision is common in franchise agreements to comply with state franchise laws, which often aim to protect franchisees from overreaching franchisor practices. By explicitly stating that waivers are not effective under Maryland law, Buff City Soap is aligning its franchise agreement with state regulations and ensuring that franchisees understand their rights are protected. This can provide peace of mind for prospective franchisees, knowing that their legal recourse under Maryland law remains intact.