Does the Maryland addendum to the Canine Dimensions Franchise Agreement require any specific modifications to the standard 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.
The appropriate sections of the Franchise Agreement are also amended accordingly.
Item 17 of the Disclosure Document and Article 23 of the Franchise Agreement are amended to state that any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise.
Item 17 of the Disclosure Document is amended to state that the Franchise Agreement requires binding arbitration, the site of which is in the State of Florida, the costs of which are borne by the parties equally and any issues not decided by arbitration may be brought in a court of competent jurisdiction.
However, according to Section 14-216(c)(25) of the Maryland Franchise Registration and Disclosure Law, a franchisee is permitted to enter into litigation with the Franchisor in the State of Maryland, notwithstanding the language in the Franchise Agreement.
The appropriate sections of the Franchise Agreement are amended accordingly.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to the 2025 Canine Dimensions Franchise Disclosure Document, the Maryland addendum does require specific modifications to the Franchisee Disclosure Acknowledgment Statement. Specifically, Exhibit G to the FDD, which is the Franchisee Disclosure Acknowledgment Statement, is amended to clarify that any representations requiring prospective franchisees to agree to a release, estoppel, or waiver of liability will not act as a release, estoppel, or waiver of liability under the Maryland Franchise Registration and Disclosure Law. This modification ensures that franchisees do not inadvertently waive their rights under Maryland law when signing the acknowledgment. Schedule D to the Franchise Agreement, the Franchisee Disclosure Acknowledgment Statement, is also amended.
This modification is further reinforced by stating that any disclaimer regarding the occurrence or acknowledgment of non-occurrence 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. This provision is designed to protect the franchisee's rights under Maryland law, preventing Canine Dimensions from using the acknowledgment statement to circumvent those protections.
In practical terms, this means that a Canine Dimensions franchisee in Maryland retains their rights under the Maryland Franchise Registration and Disclosure Law, regardless of what they might sign in the standard Franchisee Disclosure Acknowledgment Statement. This offers additional protection to the franchisee, ensuring that they can pursue claims under Maryland law if necessary. Prospective franchisees in Maryland should carefully review the addendum to understand their rights and how the standard acknowledgment statement is modified to protect those rights.