For C12 Group franchisees in Maryland, does the provision regarding waiver of claims supersede other terms in the franchise documents?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
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 46–137)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, for prospective franchisees in Maryland, any statement, questionnaire, or acknowledgment signed in connection with starting the franchise will not waive claims under Maryland franchise law, including fraud in the inducement. This also applies to disclaiming reliance on statements made by C12 Group or its representatives. This specific provision overrides any conflicting terms in any document related to the franchise agreement.
In practical terms, this means that even if a C12 Group franchisee in Maryland signs a document that appears to waive their rights or claims, that waiver is not enforceable under Maryland's franchise laws. This protection extends to claims of fraud, where the franchisee alleges they were misled into investing in the franchise. The franchisee can still pursue legal action based on those claims, regardless of any waivers they may have signed.
This safeguard is particularly important because it prevents C12 Group from using standard contract language to shield itself from liability for misrepresentations or violations of Maryland franchise law. It ensures that franchisees retain their legal rights and remedies, providing a level of protection against potentially overreaching franchisor practices. Prospective franchisees should still carefully review all documents and seek legal advice, but this provision offers additional security under Maryland law.