In Maryland, do provisions in the Crisp & Green franchise agreement requiring a release, estoppel, or waiver of liability act as a release, estoppel, or waiver of liability under the Maryland Franchise Registration and Disclosure Law?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
To the extent that any provisions of the franchise agreement or area development agreement require you to assent to any release, estoppel or waiver of liability as a condition to your purchasing a franchise, such provisions are not intended to nor shall they act as a release, estoppel or waiver of any liability under the Maryland Franchise Registration and Disclosure Law.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to the 2024 Crisp & Green Franchise Disclosure Document, provisions within the franchise agreement that require a franchisee to release, provide estoppel, or waive liability as a condition of purchasing a franchise are not intended to, and will not, act as a release, estoppel, or waiver of any liability under the Maryland Franchise Registration and Disclosure Law. This protection ensures that franchisees in Maryland retain their rights and remedies under Maryland franchise law, regardless of any potentially conflicting language in the franchise agreement. This stipulation is included in an addendum specific to Maryland, acknowledging the state's franchise regulations.
This addendum to the Crisp & Green franchise agreement and area development agreement explicitly states that general release language required for renewal, sale, assignment, or transfer does not apply to claims arising under the Maryland Franchise Registration and Disclosure Law. This means that franchisees cannot be forced to waive their rights under Maryland franchise law as a condition of these transactions. The addendum also clarifies that while the standard agreement may stipulate litigation be held at the location of Crisp & Green's principal executive office, franchisees can still sue in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, although mediation and arbitration provisions still apply.
Furthermore, the Crisp & Green addendum for Maryland addresses acknowledgments signed by franchisees. No statement, questionnaire, or acknowledgment signed by a franchisee at the start of the franchise relationship can waive claims under any applicable state franchise law, including claims of fraud in the inducement, or disclaim reliance on statements made by the franchisor or its representatives. This provision overrides any other conflicting terms in any document related to the franchise, reinforcing the protection of franchisees' rights under Maryland law. Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise.