Does the Maryland Addendum for Care Plus Medical Ucc affect claims of fraud in the inducement?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
MARYLAND ADDENDUM TO DISCLOSURE DOCUMENT
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.
In the State of Maryland only, this Disclosure Document is amended as follows:
The following is added to Item 17:
The general release required as a condition of renewal, sale, and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise.
You have the right to file a lawsuit alleging a cause of action arising under the Maryland Franchise Law in any court of competent jurisdiction in the State of Maryland.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to the 2024 Care Plus Medical Ucc Franchise Disclosure Document, the Maryland Addendum addresses claims of fraud in the inducement. Specifically, it states that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under Maryland franchise law, including claims related to fraud in the inducement. This means that any agreement a franchisee signs with Care Plus Medical Ucc cannot prevent them from pursuing a fraud claim if they believe they were induced into the franchise agreement through fraudulent means. This provision is designed to protect franchisees' rights under Maryland law.
Furthermore, the Maryland Addendum explicitly states that franchisees cannot disclaim reliance on statements made by Care Plus Medical Ucc or its representatives. This ensures that franchisees can hold Care Plus Medical Ucc accountable for representations made during the franchise sales process. This protection supersedes any conflicting terms in other documents related to the franchise agreement, reinforcing the franchisee's ability to pursue legal remedies for fraud.
In addition to addressing fraud in the inducement, the Maryland Addendum includes other provisions relevant to franchisees in Maryland. It specifies that the general release required for renewal, sale, or transfer of the franchise does not apply to liabilities under the Maryland Franchise Registration and Disclosure Law. It also sets a three-year statute of limitations for claims arising under this law and confirms the franchisee's right to file lawsuits in Maryland courts. These provisions collectively strengthen the legal protections available to Care Plus Medical Ucc franchisees operating in Maryland.