How is the Canine Dimensions Franchise Agreement amended regarding representations requiring a prospective franchisee to assent to a general release, estoppel, or waiver of liability?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.
-
- 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.
-
- 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.
-
- The registered agent authorized to receive process in Maryland is the Maryland Securities Commissioner, 200 St.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, the Franchise Agreement is amended to clarify the enforceability of releases, estoppels, or waivers of liability, particularly in relation to state franchise laws. Specifically, representations requiring a prospective franchisee to agree to such releases are not intended to act as a waiver of liability under the Maryland Franchise Registration and Disclosure Law. This amendment is reflected in both the Franchise Agreement itself and Exhibit G to the FDD. This ensures that franchisees in Maryland retain their rights and protections under state law, despite any general release clauses in the franchise agreement.
Furthermore, for franchises offered and sold in Minnesota, any provision in the Franchise Agreement that requires a franchisee to assent to a release, assignment, novation, or waiver that would relieve any person from liability imposed by Minnesota Statutes, Sections 80C.01 to 80C.22 is void to the extent that such contractual provision violates such law. This ensures that franchisees in Minnesota retain their rights and protections under state law, despite any general release clauses in the franchise agreement.
These amendments reflect a growing trend in franchise law to protect franchisees from overreaching franchisor demands, especially concerning waivers of legal rights. Prospective Canine Dimensions franchisees should carefully review these amendments and understand their implications, particularly if they are operating in Maryland or Minnesota. It is advisable to consult with a legal professional to fully understand the scope of these protections and how they apply to their specific circumstances.