In Maryland, can Chem Dry require prospective franchisees to assent to a release, estoppel, or waiver of liability under the Maryland Franchise Registration and Disclosure Law?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
s arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise.
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- All 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. Maryland franchisees and/or those operating outlets within the State of Maryland are not to sign the Disclosure Questionnaire attached as Exhibit I.
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- 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.
In all other respects, the Franchise Agreement will be construed and enforced according to its terms.
| FRANCHISEE | CHEM-DRY, INC.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, any requirements for prospective franchisees in Maryland to release, waive, or estop any liability under the Maryland Franchise Registration and Disclosure Law are not intended to act as such a release, estoppel, or waiver. This means that while Chem Dry may present documents that appear to require these actions, they are not legally enforceable regarding liabilities under that specific Maryland law.
Furthermore, Chem Dry franchisees in Maryland, or those operating outlets there, are not required to sign the Disclosure Questionnaire attached as Exhibit I. This suggests that Chem Dry acknowledges the specific legal protections afforded to franchisees in Maryland and adjusts its practices accordingly.
Any general release required as a condition of renewal, sale, assignment, or transfer of the store or Franchise Agreement does not apply to any liability under the Maryland Franchise Registration and Disclosure Law. This ensures that franchisees retain their rights and protections under Maryland law, even when engaging in transactions like renewing or selling their franchise. The Franchise Agreement also specifies that franchisees are permitted to bring a lawsuit in Maryland for claims arising under this Law.
These stipulations are included in an addendum to the standard franchise agreement specifically for Maryland, indicating Chem Dry's awareness of and compliance with Maryland franchise law. This addendum takes precedence over any conflicting terms in the standard agreement, reinforcing the protections for Maryland franchisees.