For C12 Group franchises in Maryland, what is the implication of superseding other terms of any document?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
REQUIRED BY STATE OF MARYLAND
FOR PROSPECTIVE FRANCHISEES IN THE STATE OF MARYLAND
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 FDD, for prospective C12 Group franchisees in Maryland, any statement, questionnaire, or acknowledgment signed during the commencement of the franchise relationship cannot waive claims under Maryland franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor or its representatives. This specific provision takes precedence over any conflicting terms in any document related to the franchise agreement.
This means that even if a franchisee signs a document that appears to waive certain rights or disclaim reliance on the franchisor's statements, those waivers or disclaimers will not be enforceable under Maryland law to the extent they conflict with the protections afforded by Maryland's franchise laws. This is designed to protect franchisees from inadvertently or unknowingly giving up their legal rights.
This protection is particularly important because it prevents C12 Group from using standardized forms or agreements to circumvent the protections that Maryland law provides to franchisees. Prospective franchisees should be aware of this provision and understand that they cannot be compelled to waive their rights under Maryland franchise law through any agreement or acknowledgment.