What is the significance of Section 14-226 of the Maryland Franchise Registration and Disclosure Law in relation to the Cool Binz franchise agreement?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
Pursuant to Section 14-226 of the Maryland Franchise Registration and Disclosure Law The following is added at the end of Section 17 of the Agreement and to the Disclosure Acknowledgement Questionnaire:
The representations, acknowledgements and affirmations in the preceding section 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 Act.
The following statements in Section 15.L of the FA are deleted: "You acknowledge that you are entering into this Agreement as a result of your own independent investigation of our COOL BINZ Business and not as a result of any representations about us made by our shareholders, officers, directors, employees, agents, representatives, independent contractors, or franchisees that are contrary to the terms set forth in this Agreement, or in any disclosure document, prospectus, or other similar document required or permitted to be given to you pursuant to applicable law."
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, Section 14-226 of the Maryland Franchise Registration and Disclosure Law is addressed in an addendum to the franchise agreement. Specifically, it concerns acknowledgments made by the franchisee.
The addendum states that representations, acknowledgments, and affirmations made by the franchisee will not act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Act. This means that even if a franchisee acknowledges certain aspects of the franchise agreement or the COOL BINZ business, those acknowledgments cannot be used to prevent the franchisee from pursuing claims under Maryland franchise law.
Furthermore, the FDD states that certain statements in Section 15.L of the Franchise Agreement are deleted. These statements would have had the franchisee acknowledge entering the agreement based on their own investigation, not on representations made by Cool Binz that contradict the agreement or disclosure documents. By deleting these statements, Cool Binz ensures that franchisees are not prevented from claiming reliance on representations made by the franchisor, which could be important in a dispute.