In Maryland, can a Circle K franchisee disclaim reliance on statements made by the franchisor or their representatives through any signed statement?
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.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, Maryland franchisees are protected from waiving claims or disclaiming reliance on franchisor statements. Specifically, any statement, questionnaire, or acknowledgment signed by a Circle K franchisee in Maryland related to the franchise commencement cannot waive claims under state franchise law, including fraud in the inducement.
Moreover, a Circle K franchisee in Maryland cannot disclaim reliance on any statement made by Circle K, its franchise seller, or anyone acting on Circle K's behalf. This protection is built into Maryland's franchise laws to ensure franchisees are not bound by agreements that might force them to forfeit their rights based on misleading information.
This provision in the FDD supersedes any conflicting terms in any document executed in connection with the Circle K franchise agreement. This means that even if other parts of the franchise agreement suggest otherwise, this specific clause protecting the franchisee's rights takes precedence under Maryland law.