Regarding the Card My Yard Franchise Agreement, do representations requiring franchisees to release liability act as a release of liability under the Maryland Franchise Registration and Disclosure Law?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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- 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 the 2025 Card My Yard Franchise Disclosure Document, for franchisees operating in Maryland, the representations requiring prospective franchisees to agree to a release, estoppel, or waiver of liability are not intended to, nor will they act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. This means that even if the Franchise Agreement contains language that seems to release Card My Yard from liability, those clauses will not be effective regarding claims arising under Maryland's franchise law. This protection is specifically designed to safeguard the rights of franchisees under Maryland law.
Furthermore, the Card My Yard FDD states that no statement, questionnaire, or acknowledgment signed by a franchisee in connection with starting the franchise can waive claims under any applicable state franchise law, including claims of fraud. Similarly, franchisees cannot disclaim reliance on any statement made by Card My Yard or anyone acting on its behalf. This provision overrides any other conflicting terms in any document related to the franchise agreement, reinforcing the franchisee's rights and protections under Maryland law.
These stipulations ensure that Card My Yard franchisees in Maryland retain their legal rights and recourse under the state's franchise laws, regardless of any potentially conflicting language in the franchise agreement. This is a significant protection for franchisees, as it prevents them from inadvertently waiving their rights through standard contractual clauses. It also allows a franchisee to bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, and any such claims must be brought within three years after the grant of the franchise.