For Circle K franchises in Maryland, what is the effect of a statement signed by a franchisee that disclaims reliance on statements made by the franchisor?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
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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.
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- In all other respects, the Franchise Agreement will be construed and enforced according to its terms.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, a statement, questionnaire, or acknowledgment signed by a franchisee in Maryland regarding the commencement of the franchise relationship cannot waive claims under any applicable state franchise law, including fraud in the inducement. Furthermore, such a statement cannot disclaim reliance on any statement made by Circle K, franchise sellers, or individuals acting on behalf of Circle K. This provision takes precedence over any conflicting terms in any document executed in connection with the franchise.
In practical terms, this means that if a prospective Circle K franchisee in Maryland signs a document stating they are not relying on any representations made by Circle K during the franchise sales process, that statement will not be legally binding. The franchisee retains the right to bring claims against Circle K for misrepresentation or fraud, even if they signed something to the contrary. This protection is afforded by Maryland franchise law.
This addendum to the franchise agreement specifically protects franchisees in Maryland. It ensures that franchisees are not pressured into relinquishing their legal rights through standardized forms or agreements. This protection is particularly important in the context of franchise sales, where there may be a power imbalance between the franchisor and the franchisee. Franchisees should still carefully evaluate all information provided by Circle K and conduct their own due diligence, but this provision offers an additional layer of security.
It is important to note that this protection applies specifically to claims arising under Maryland franchise law. In all other respects, the Franchise Agreement will be construed and enforced according to its terms.