factual

Does the Maryland addendum to the Chem Dry franchise agreement supersede all other terms of any document executed in connection with the franchise?

Chem_Dry Franchise · 2024 FDD

Answer from 2024 FDD Document

    1. 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. Maryland franchisees and/or those operating outlets within the State of Maryland are not to sign the Disclosure Questionnaire attached as Exhibit I.
    1. All other rights, obligations, and provisions of the Franchise Agreement shall remain in full force and effect. This Addendum is incorporated in and made a part of the Franchise Agreement for the State of Maryland.

Source: Item 22 — CONTRACTS (FDD page 68)

What This Means (2024 FDD)

According to the 2024 Chem Dry Franchise Disclosure Document, under certain specific conditions, the Maryland addendum does supersede other terms in documents related to the franchise. Specifically, a provision within the Maryland addendum states that no statement, questionnaire, or acknowledgment signed by a franchisee at the start of the franchise relationship can waive claims under state franchise law, including fraud, or disclaim reliance on franchisor statements.

This particular provision overrides any conflicting terms in any document executed in connection with the Chem Dry franchise. This means that Chem Dry franchisees in Maryland retain their rights and protections under Maryland franchise law, regardless of any waivers or disclaimers they may have signed in other documents. The FDD also specifies that Maryland franchisees should not sign the Disclosure Questionnaire attached as Exhibit I.

However, it is important to note that this superseding effect is limited to the specific provision regarding waivers and disclaimers related to Maryland franchise law. The addendum also states that all other rights, obligations, and provisions of the Franchise Agreement remain in full force and effect. Therefore, while the Maryland addendum provides additional protection to franchisees regarding certain legal rights, it does not generally override all other terms and conditions of the franchise agreement or related documents.

In practical terms, this means that a Chem Dry franchisee in Maryland cannot be forced to give up their legal rights under Maryland franchise law through standard contract clauses. This offers a degree of protection against potentially overreaching franchisor actions. However, franchisees must still comply with all other aspects of the franchise agreement and related documents, except where those aspects conflict directly with the specific protections afforded by Maryland law as outlined in the addendum.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.