For a Bumper Man franchise in Maryland, what is the effect of representations requiring prospective franchisees to assent to a release, estoppel or waiver of liability?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
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- For the sake of clarity, the last sentence of the Franchisee Disclosure Questionnaire attached as Exhibit H to the Disclosure Document is amended as follows:
"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."
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, any representations requiring prospective franchisees in Maryland to agree to a release, estoppel, or waiver of liability will not act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. This means that even if a franchisee signs a document that appears to waive their rights, they still retain their rights under Maryland franchise law. This protection is specifically designed to ensure that franchisees are not unknowingly or unfairly deprived of their legal rights under Maryland law.
This provision is crucial for prospective Bumper Man franchisees in Maryland as it safeguards their ability to pursue claims under the Maryland Franchise Registration and Disclosure Law, regardless of any agreements they may have signed. It ensures that franchisees cannot be forced to relinquish their legal protections through standard contract clauses. This is particularly important in franchise agreements, which are often complex and may contain provisions that could be interpreted as limiting a franchisee's rights.
Furthermore, the FDD explicitly states that the Franchisee Disclosure Questionnaire is amended to reflect this protection. This amendment reinforces the intent to protect franchisees' rights under Maryland law. The document also states that prospective franchisees who are residents of Maryland or will be operating the business in Maryland should not sign the Franchisee Questionnaire. This is because the standard questionnaire contains acknowledgments that could be misconstrued as waivers, which are not enforceable under Maryland law.
In summary, these provisions ensure that Bumper Man franchisees in Maryland retain their full legal rights under the Maryland Franchise Registration and Disclosure Law, regardless of any potentially conflicting language in the franchise agreement or related documents. This offers a significant layer of protection for franchisees, ensuring they can seek legal recourse if necessary, without being barred by waivers or releases they may have inadvertently signed.