Should Maryland franchisees of Crave respond to or sign the Acknowledgment Statement included in Exhibit I of the Franchise Disclosure Document?

According to Crave's 2025 Franchise Disclosure Document, Maryland franchisees should not respond to or sign the Acknowledgment Statement included in Exhibit I of the Franchise Disclosure Document. This is explicitly stated in Item 23, which serves as the State Addendum for Maryland. This addendum modifies certain aspects of the standard franchise agreement to comply with Maryland law.

The reason for this instruction is to protect the rights of Maryland franchisees under the Maryland Franchise Registration and Disclosure Law. The addendum ensures that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under Maryland franchise law, including claims of fraud in the inducement, or disclaim reliance on statements made by Crave or its representatives. This provision takes precedence over any conflicting terms in other documents related to the franchise agreement.

This means that if a prospective franchisee in Maryland were to sign the Acknowledgment Statement in Exhibit I, it would be considered invalid and unenforceable to the extent that it conflicts with Maryland franchise law. Crave is ensuring compliance with Maryland law, which aims to protect franchisees from inadvertently waiving their legal rights. Therefore, Maryland franchisees must adhere to the specific instructions provided in the state addendum and refrain from signing the standard Acknowledgment Statement.