In Maryland, can a Cinnaholic franchisee disclaim reliance on statements made by the franchisor?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 27–35)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, if you are a franchisee in Maryland, you cannot disclaim reliance on statements made by Cinnaholic or anyone acting on their behalf. This means that any statement, questionnaire, or acknowledgment signed by a franchisee cannot waive claims under Maryland franchise law, including claims of fraud. This protection extends to reliance on statements made by Cinnaholic, franchise sellers, or anyone else representing Cinnaholic. This specific provision overrides any conflicting terms in any document related to the franchise agreement.
This addendum ensures that Cinnaholic franchisees in Maryland retain their rights to pursue legal action based on misrepresentations or fraudulent statements made during the franchise sales process. It strengthens the franchisee's position by preventing Cinnaholic from enforcing clauses that might otherwise limit their liability for misleading information.
This type of protection is not universally included in franchise agreements across all states. Some states may allow disclaimers of reliance, which can make it more difficult for franchisees to prove they were misled. Therefore, the Maryland addendum provides a significant benefit to franchisees by preserving their legal recourse in cases of misrepresentation or fraud.