Regarding the Franchise Questionnaire completed for a Chop5 Salad Kitchen franchise, do representations disclaiming or acknowledging acts that violate Maryland Franchise Law act as a release of liability?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
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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.
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 made by a prospective franchisee in the Franchise Questionnaire disclaiming or acknowledging acts that would violate Maryland Franchise Law do not act as a release of liability. This means that even if a franchisee makes certain statements in the questionnaire, those statements cannot be used to waive Chop5 Salad Kitchen's responsibility or liability under Maryland Franchise Law.
This provision protects franchisees by ensuring that they cannot inadvertently waive their rights under Maryland law simply by completing the Franchise Questionnaire. It also reinforces that Chop5 Salad Kitchen is accountable for complying with Maryland Franchise Law, regardless of any disclaimers or acknowledgements made by the franchisee in the questionnaire.
Furthermore, the FDD includes amendments to the franchise agreement and supplemental agreements to ensure compliance with Maryland Franchise Law. These amendments specify that claims under Maryland Franchise Law must be brought within three years, general releases do not apply to liability under Maryland Franchise Law, franchisees can sue in Maryland for claims arising under the law, and nothing disclaims representations made in the Franchise Disclosure Document.