In Maryland, what is the effect of a statement signed by a City Publications franchisee regarding commencement of the franchise relationship?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
ITEM 17 of the Disclosure Document is amended to add the following:
- ◼ 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 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications's 2025 Franchise Disclosure Document, a statement, questionnaire, or acknowledgment signed by a franchisee in Maryland at the start of their franchise relationship does not waive any claims under Maryland franchise law. This protection specifically includes claims related to fraud in the inducement. Furthermore, these documents cannot disclaim reliance on statements made by City Publications, its sellers, or anyone acting on their behalf. This rule overrides any conflicting terms in any document related to the franchise agreement.
This provision is favorable for prospective City Publications franchisees in Maryland. It ensures that franchisees retain their legal rights under Maryland franchise law, even if they sign documents that might suggest otherwise. This protection is particularly important regarding potential claims of fraud, where a franchisee might argue that they were misled into investing in the franchise.
This addendum aims to protect franchisees from inadvertently relinquishing their rights through standard paperwork. It reflects an effort to comply with Maryland's franchise regulations, which prioritize franchisee protection. Prospective franchisees should carefully review all documents and understand their rights under Maryland law, consulting with an attorney if necessary.
In essence, this clause creates a safety net for City Publications franchisees in Maryland, ensuring that their legal recourse remains intact regardless of any statements they make during the initial phase of the franchise relationship. This promotes transparency and fairness in the franchising process, aligning with the intent of Maryland's franchise laws.