How does the Maryland addendum affect Exhibit G to the Canine Dimensions Disclosure Document and Schedule D to the Franchise Agreement, specifically the Franchisee Disclosure Acknowledgment Statement?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
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 addendum modifies Exhibit G of the FDD and Schedule D of the Franchise Agreement, which is the Franchisee Disclosure Acknowledgment Statement. Specifically, any disclaimers or acknowledgments regarding actions that might violate the Maryland Franchise Registration and Disclosure Law will not act as a release, estoppel, or waiver of liability under that law. This means that even if a franchisee signs a statement that seems to waive their rights, it will not prevent them from pursuing claims under Maryland franchise law.
In practical terms, this addendum protects Canine Dimensions franchisees in Maryland by ensuring they cannot inadvertently waive their legal rights under Maryland franchise law when purchasing a franchise. It prevents Canine Dimensions from using the Franchisee Disclosure Acknowledgment Statement to shield itself from liability for violations of Maryland franchise law.
This type of addendum is common in franchise agreements to comply with state-specific franchise laws, which often aim to protect franchisees. Prospective Canine Dimensions franchisees in Maryland should carefully review the Maryland Franchise Registration and Disclosure Law to understand their rights and how this addendum protects them. They should also consult with an attorney to ensure they fully understand the implications of this addendum and their rights under Maryland law.