Does the C3 Wellness Spa franchise agreement intend for representations requiring franchisees to release liability to act as a waiver of liability under the Maryland Franchise Registration and Disclosure Law?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
A general release required as a condition of renewal, sale and/or assignment or transfer of a Franchise Agreement shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise.
No statement, questionnaire or acknowledgement 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 59–293)
What This Means (2024 FDD)
According to the 2024 C3 Wellness Spa Franchise Disclosure Document, the franchise agreement does not intend for representations requiring franchisees to release liability to act as a waiver of liability under the Maryland Franchise Registration and Disclosure Law. The FDD includes a Maryland Franchise and Development Agreement Amendment that specifically addresses the requirements of the Maryland Franchise Registration and Disclosure Law.
Specifically, the amendment states that 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. This provision aims to ensure that franchisees' rights under Maryland law are protected and not inadvertently waived through standard agreement clauses.
Furthermore, the amendment clarifies that a general release required as a condition of renewal, sale, assignment, or transfer of a Franchise Agreement will not apply to any liability under the Maryland Franchise Registration and Disclosure Law. This ensures that franchisees retain their rights to pursue claims under Maryland law even when engaging in transactions such as renewing or transferring their franchise. Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise.
To further protect franchisees, the amendment stipulates that no statement, questionnaire, or acknowledgment signed by a franchisee in connection with the commencement of the franchise relationship shall waive any claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on any statement made by the franchisor or its representatives. This provision supersedes any other conflicting term in any document executed in connection with the franchise, reinforcing the protection of franchisees' rights under Maryland law.