What is the effect of the amendment to the Canine Dimensions Franchise Agreement regarding general releases on the franchisee's ability to pursue claims under Maryland law?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
ng the language in the Franchise Agreement. The appropriate sections of the Franchise Agreement are amended accordingly.
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- Exhibit G to the FDD is hereby amended to provide 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.
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- The Franchise Agreement is hereby amended to state that any representations which require a prospective franchisee to assent to any general release, estoppel or waiver of liability as a condition of purchasing a franchise 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.
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- The Franchise Agreement provides that disputes are resolved through arbitration. A Maryland franchise regulation states that it is an unfair or deceptive practice to require a franchisee to waive its right to file a lawsuit in Maryland claiming a violation of the Maryland Franchise Law. In light of the Federal Arbitration Act, there is some dispute as to whether this forum selection requirement is legally enforceable.
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- The registered agent authorized to receive process in Maryland is the Maryland Securities Commissioner, 200 St. Paul Place, Baltimore, Maryland 21202-2020.
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.
The undersigned do hereby acknowledge receipt of this addendum.
| Addendum dated this day of, 20 | IN WITNESS WHEREOF, the parties hereto have duly executed, sealed and delivered this |
|---|---|
| ATTEST CANINE DIMENSIONS FRANCHISING, LLC | |
| Witness Name: | By: Title: FRANCHISEE: |
| Witness |
ADDENDUM TO CANINE DIMENSIONS FRANCHISING, LLC DISCLOSURE DOCUMENT FOR THE STATE OF MINNESOTA
Despite anything to the contrary in the Franchise Agreement, the following provisions will supersede and apply to all franchises offered and sold in the State of Minnesota:
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, several amendments clarify the effect of general releases on a franchisee's ability to pursue claims under Maryland law. Specifically, the Franchise Agreement is amended to ensure that any requirement for a franchisee to agree to a general release, estoppel, or waiver of liability as a condition of purchasing the franchise does not act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. This amendment is also reflected in Exhibit G to the FDD. These changes are intended to comply with Section 14-226 of the Maryland Franchise Registration and Disclosure Law, which prohibits a franchisor from requiring a prospective franchisee to waive liability under that law as a condition of buying a franchise.
Further amendments address general releases required as a condition of renewal or assignment/transfer of the franchise. These releases are also clarified to not act as a release, estoppel, or waiver of liability under the Maryland Franchise Registration and Disclosure Law, in accordance with COMAR 02.02.08.16L. This ensures that franchisees retain their rights under Maryland law even when signing general releases for renewal or transfer purposes. Additionally, any disclaimer regarding acts that would violate the Franchise Law does not act as a release, estoppel, or waiver of liability under the Maryland Franchise Registration and Disclosure Law. This amendment applies to Exhibit G of the Disclosure Document and Schedule D of the Franchise Agreement, known as the Franchisee Disclosure Acknowledgment Statement.
These amendments collectively reinforce that Canine Dimensions franchisees in Maryland cannot be compelled to waive their rights or release the franchisor from liabilities under Maryland franchise law as a condition of purchasing, renewing, or transferring a franchise. This provides franchisees with greater protection and recourse under Maryland law, regardless of any general releases they may sign as part of the franchise agreement. The FDD also notes that franchisees in Maryland are permitted to enter into litigation with Canine Dimensions in the State of Maryland, notwithstanding the language in the Franchise Agreement that requires binding arbitration in Florida.