For Card My Yard franchises in Maryland, do representations requiring prospective franchisees to assent to a release, estoppel, or waiver of liability act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything to the contrary set forth in theFranchise Agreement,the following provisions willsupersede and apply to all residents of the State of Maryland, all franchises to be operated in the State of Maryland, and all franchises offered and sold in the State of Maryland:
-
- With regard to the Franchise Agreement, the 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.
-
- 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.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, specific provisions apply to franchises in Maryland regarding liability and waivers. The FDD explicitly states that representations requiring prospective franchisees to agree to a release, estoppel, or waiver of liability will not act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. This means that even if a franchisee signs an agreement with such terms, it does not prevent them from pursuing claims under Maryland's franchise law. This protection is specifically designed to safeguard franchisees' rights under state law.
Furthermore, the Card My Yard FDD clarifies that franchisees in Maryland have the right to bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. Any such claims must be brought within three years after the franchise is granted. This provision ensures that franchisees have a legal avenue to address grievances related to franchise law within a defined timeframe.
Additionally, the FDD emphasizes that no statement, questionnaire, or acknowledgment signed by a franchisee at the start of the franchise relationship can waive claims under Maryland franchise law, including claims of fraud in the inducement, or disclaim reliance on statements made by Card My Yard or its representatives. This clause reinforces the protection against inadvertently relinquishing legal rights through standard onboarding documents. This provision supersedes any other conflicting terms in any document related to the franchise agreement, providing a clear priority for franchisee protection under Maryland law.