What is the impact of the Maryland Franchise Registration and Disclosure Law on the Franchisee Disclosure Acknowledgment Statement for Canine Dimensions?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
According to COMAR 02.02.08.16L, Item 17 of the Disclosure Document shall be amended at the sections dealing with the issuance of general releases to the effect that the general release required as a condition of renewal and/or assignment/transfer are not intended to nor shall they act as a release, estoppel or waiver of any liability under the Maryland Franchise Registration and Disclosure Law.
The appropriate sections of the Franchise Agreement are deemed to be amended accordingly.
Section 14-226 of the Maryland Franchise Registration and Disclosure Law prohibits a franchisor from requiring a prospective franchisee to assent to any release, estoppel or waiver of liability as a condition of purchasing a franchise.
Any disclaimer regarding the occurrence and/or acknowledgment of the nonoccurrence of acts that would constitute a violation of the Franchise Law in order to purchase the 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.
This amends Exhibit G to the Disclosure Document and Schedule D to the Franchise Agreement, the Franchisee Disclosure Acknowledgment Statement.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, the Maryland Franchise Registration and Disclosure Law significantly impacts the Franchisee Disclosure Acknowledgment Statement. Specifically, any representations within the Franchisee Disclosure Acknowledgment Statement (Exhibit G) that require prospective franchisees to release, estop, or waive liability are not intended to, and will not, act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. This amendment ensures that franchisees in Maryland retain their rights and protections under Maryland law, regardless of any statements made in the Acknowledgment Statement.
This provision is crucial for prospective Canine Dimensions franchisees in Maryland because it prevents the franchisor from using the Acknowledgment Statement to circumvent the protections provided by Maryland franchise law. It clarifies that franchisees cannot be compelled to forfeit their legal rights or claims simply by signing the Acknowledgment Statement. This protection extends to any liability incurred due to violations of the Maryland Franchise Registration and Disclosure Law.
Furthermore, Section 14-226 of the Maryland Franchise Registration and Disclosure Law explicitly prohibits Canine Dimensions from requiring a prospective franchisee to assent to any release, estoppel, or waiver of liability as a condition of purchasing a franchise. This reinforces the franchisee's rights and ensures that they cannot be forced into relinquishing their legal recourse under Maryland law. The FDD also states that any disclaimer regarding the occurrence or acknowledgment of the nonoccurrence of acts that would violate the Franchise Law, in order to purchase the franchise, will not act as a release, estoppel, or waiver of liability under the Maryland Franchise Registration and Disclosure Law.
In summary, these stipulations ensure that the Franchisee Disclosure Acknowledgment Statement does not compromise the rights and protections afforded to Canine Dimensions franchisees under Maryland law. Prospective franchisees in Maryland can be assured that their legal rights are safeguarded, and they cannot be compelled to waive their rights through the Acknowledgment Statement or any other means as a condition of purchasing the franchise.