In Maryland, are representations requiring prospective Chop5 Salad Kitchen franchisees to release liability intended to act as a release of any liability incurred under the Maryland Franchise Registration and Disclosure Law?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
All representations requiring prospective franchisees to assent to the 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.
In recognition of the requirements of the Maryland Franchise Law, the Franchise Agreement and Supplemental Agreements are amended to add the following:
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- Any claims arising under the Maryland Franchise Law must be brought within three (3) years after the grant of the franchise.
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- Pursuant to COMAR 02.02.08.16L, the general release required as a condition of renewal, sale, and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Law.
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- You may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Law.
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- The Franchise Questionnaire that you completed in connection with your application for the franchise requires you, as a prospective franchisee, to disclaim the occurrence and/or acknowledge the nonoccurrence of acts that would constitute a violation of the Maryland Franchise Law as a condition to your purchase of the franchise. Any such representations are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Law.
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- Any acknowledgements or representations by you that disclaim the occurrence and/or acknowledge the non-occurrence of acts that would constitute a violation of the Maryland Law are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Maryland Law.
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- Nothing in the Franchise Agreement, Supplemental Agreement or in any related agreement is intended to disclaim the representations made in the Franchise Disclosure Document.
Source: Item 23 — RECEIPT (FDD pages 50–178)
What This Means (2024 FDD)
According to the 2024 Chop5 Salad Kitchen Franchise Disclosure Document, any representations requiring prospective franchisees in Maryland to release, estop, or waive liability are not intended to, and will not, act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.
The FDD specifies several amendments to the franchise agreement and supplemental agreements to comply with Maryland law. Any claims arising under the Maryland Franchise Law must be brought within three years after the franchise is granted. Additionally, the general release required for renewal, sale, or assignment/transfer of the franchise does not apply to liabilities under the Maryland Franchise Law. Franchisees are also permitted to bring lawsuits in Maryland for claims arising under this law.
Furthermore, any statements made by a prospective Chop5 Salad Kitchen franchisee in the Franchise Questionnaire disclaiming or acknowledging acts that could violate Maryland Franchise Law will not serve as a release, estoppel, or waiver of liability under that law. The FDD also clarifies that nothing in the Franchise Agreement, Supplemental Agreement, or any related agreement is intended to disclaim the representations made in the Franchise Disclosure Document itself.