factual

In Maryland, are representations requiring prospective Christian Brothers Automotive franchisees to assent to a release, estoppel, or waiver of liability intended to act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law?

Christian_Brothers_Automotive Franchise · 2025 FDD

Answer from 2025 FDD Document

However, Franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.

  1. Acknowledgements. The following language is added as a new Section 22.01(i) of the Agreement:

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.

Source: Item 22 — CONTRACTS (FDD page 76)

What This Means (2025 FDD)

According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, representations in the franchise agreement requiring prospective franchisees in Maryland to release, estop, or waive liability are not intended to act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. This means that while franchisees may be asked to sign documents containing such language, these documents will not prevent them from pursuing claims under Maryland's franchise laws.

Christian Brothers Automotive includes specific language in its franchise agreement to ensure compliance with Maryland law. This protects the franchisee's right to bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, regardless of any release, estoppel, or waiver language present in other parts of the agreement. This is further reinforced by the statement that no signed statement, questionnaire, or acknowledgment can waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Christian Brothers Automotive.

This provision offers significant protection to Christian Brothers Automotive franchisees in Maryland, ensuring that they retain their legal rights under state franchise law. Prospective franchisees should still carefully review all documents and seek legal counsel to fully understand their rights and obligations, but this clause provides assurance that they are not unknowingly waiving their ability to pursue legal remedies under Maryland law.

Disclaimer: This information is extracted from the 2025 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.