In Maryland, do representations requiring Craters & Freighters prospective franchisees to release liability act as a waiver of liability under the Maryland Franchise Registration and Disclosure Law?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
The following language is added to the Franchise Agreement: "All representations requiring prospective franchisees to assent to a release, estoppel or waiver of liability 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 Law."
Item 17.c, Requirements for Franchisee to Renew or Extend, and Item 17.m, Conditions for Franchisor's Approval of Transfer, of the Franchise Disclosure Document, and Section 32.4 of the Franchise Agreement are revised to include the following: "The general release required as a condition of renewal and/or assignment/transfer will not apply to any liability under the Maryland Franchise Registration and Disclosure Law."
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, any representations that require prospective franchisees in Maryland to release, estop, or waive liability do not act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. This means that Craters & Freighters franchisees in Maryland retain their rights and protections under this law, regardless of any agreements they may sign to the contrary.
This protection extends to general releases required as a condition of renewal or assignment/transfer of the franchise. These releases will not apply to any liability under the Maryland Franchise Registration and Disclosure Law. This ensures that franchisees are not inadvertently giving up their legal rights when renewing their franchise agreement or transferring it to another party.
This provision is specifically designed to protect franchisees in Maryland and ensures that the state's franchise laws are upheld, regardless of any potentially conflicting terms in the franchise agreement. Prospective franchisees in Maryland should be aware of this protection and understand that they cannot be forced to waive their rights under Maryland law.