Are all representations requiring prospective C3 Wellness Spa franchisees to assent to a release, estoppel, or waiver of liability intended to act as a release, estoppel, or waiver of any liability incurred 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.
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 C3 Wellness Spa's 2024 Franchise Disclosure Document, any representations requiring prospective franchisees in Maryland to agree to a release, estoppel, or waiver of liability are not intended to act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. This protection extends to general releases required for renewal, sale, assignment, or transfer of a Franchise Agreement, ensuring these releases do not cover liabilities under the Maryland law.
To further protect franchisees, the C3 Wellness Spa franchise agreement includes provisions that no statement, questionnaire, or acknowledgment signed by a franchisee at the start of the franchise relationship will waive claims under any applicable state franchise law, including claims of fraud in the inducement. This also prevents franchisees from disclaiming reliance on statements made by the franchisor or its representatives. This provision overrides any conflicting terms in other documents related to the franchise agreement.
These stipulations are reinforced by a Maryland FDD addendum, which amends specific articles of the Franchise Agreement to ensure compliance with the Maryland Franchise Registration and Disclosure Law. These amendments clarify that franchisees retain all rights and causes of action arising from the provisions of the Maryland law, and that franchisees may bring lawsuits in Maryland for claims arising under this law. These measures collectively aim to safeguard the rights of C3 Wellness Spa franchisees in Maryland and ensure adherence to state franchise regulations.