Do representations requiring a Cream franchisee to waive liability act as a waiver of liability under the Maryland Franchise Registration and Disclosure Law?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
If the franchised business is located in Maryland or if you are a resident of Maryland, the following shall apply: Any general release provided for hereunder shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, representations that require prospective franchisees to release, provide estoppel, or waive liability are not intended to act as a waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. This protection applies specifically to franchisees operating in Maryland.
Furthermore, the FDD states that if the franchised business is located in Maryland, any general release provided for under the agreement will not apply to any liability under the Maryland Franchise Registration and Disclosure Law. This ensures that franchisees in Maryland retain their rights and protections under Maryland franchise law, regardless of any general release clauses in the franchise agreement.
In addition, the Cream franchise agreement specifies that any release required as a condition of renewal and/or assignment/transfer will not apply to claims arising under the Maryland Franchise Registration and Disclosure Law, as per COMAR 02.02.08.16L. The FDD also clarifies that a franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure law, and any such claims must be brought within 3 years after the grant of the franchise.