Does a waiver by Creative World School of any rights constitute a waiver of future rights?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
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 behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
- Sections (c) and (m) of Item 17 are amended by adding the following language:
The general release required as a condition of renewal, sale, and/or assignment or transfer will not apply to any liability under the Maryland Franchise and Disclosure Law (the "Maryland Law").
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- Item 17 is amended by adding the following language after the table:
- (a) The provision of the Franchise Agreement that provides for termination upon bankruptcy of the franchisee may not be enforceable under federal bankruptcy law (11 U.S.C. Section 101, et seq.)
- (b) Any claims arising under the Maryland Law must be brought within 3 years after the grant of the franchise.
- (c) A franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
RIDER TO CREATIVE WORLD SCHOOLS FRANCHISING COMPANY, INC. FRANCHISE AGREEMENT FOR USE IN MARYLAND
This Rider is entered into this, 20 (the "Effective Date"), between CREATIVE WORLD SCHOOLS FRANCHISING COMPANY, INC., a Florida corporation ("we," "us," "our" or "Franchisor"), with its principal business address at 25110 Bernwood Drive, Suite #104, Bonita Springs, Florida 34135, and , a whose principal business address is (referred to in this Rider as "you," "your" or "Franchisee") and amends the Franchise Agreement between the parties dated as of the Effective Date, (the "Agreement"). 1. Precedence and Defined Terms. This Rider is an integral part of, and is incorporated into, the Agreement. Nevertheless, this Rider supersedes any inconsistent or conflicting provisions of the Agreement. Terms not otherwise defined in this Rider have the meanings as defined in the Agreement. 2. Questionnaires and Acknowledgements. No statement, questionnaire or acknowledgement 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 behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise. 3. Acknowledgments. Section 1.02 of the Agreement is deleted in its entirety. 3. General Release. The general release required as a condition of renewal, sale, and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law. 4. Limitation of Claims. Provided, however, that any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise to you. 5. Jurisdiction. Provided, however, that you may bring a lawsuit against us in Maryland for any claims arising under the Maryland Franchise Registration and Disclosure Law. 6. No Waiver. All representations requiring prospective franchisees to assent to a release, estoppel or wavier 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. Intending to be bound, you and we sign and deliver this Rider in 2 counterparts effective on the Agreement Date, regardless of the actual date of signature. CREATIVE WORLD SCHOOLS FRANCHISING COMPANY, INC.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School Franchise Disclosure Document, specific addenda address the waiver of rights in certain states. For franchisees in Maryland, the Rider to the Franchise Agreement states that representations requiring prospective franchisees to assent to a release, estoppel, or waiver of 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 any agreement to waive rights or release Creative World School from liability does not apply to liabilities arising under Maryland franchise law.
Similarly, for franchisees in New York, the FDD includes a provision that all rights enjoyed and any causes of action arising in the franchisee's favor from the provisions of Article 33 of the General Business Law of the State of New York and the regulations issued thereunder remain in force. The intent of this provision is to ensure that the non-waiver provisions of General Business Law Sections 687.4 and 687.5 are satisfied. This means that the franchisee's rights under New York law cannot be waived by any agreement or provision in the franchise agreement.
For franchisees in Minnesota, the addendum to the Franchise Disclosure Document states that 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 waiving any claims under any applicable state franchise law, including fraud in the inducement, or disclaiming reliance on behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise. Therefore, any attempt to waive claims under Minnesota franchise law or disclaim reliance on the franchisor is invalid.
These state-specific provisions ensure that franchisees retain their rights and protections under state franchise laws, regardless of any agreements or waivers they may have signed. This is a significant protection for franchisees, as it prevents Creative World School from using waivers to avoid liability under state franchise laws. Prospective franchisees should carefully review the specific addenda and riders applicable to their state to understand the full extent of their rights and protections.