What statement regarding franchisee waivers or disclaimers must Crowne Plaza include in its franchise agreements in Maryland, according to the Interpretive Opinion issued by the State of Maryland Office of the Attorney General Securities Division?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Pursuant to the Interpretive Opinion "Adopting NASAA Statement of Policy Regarding the Use of Franchise Questionnaires and Acknowledgments" dated January 23, 2023 (the "Interpretive Opinion"), issued by the State of Maryland Office of the Attorney General Securities Division (the "Division"), the Division requires franchisors selling franchises that are subject to the Maryland Franchise Registration and Disclosure Law to include the following statement in their franchise agreements: "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 (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise." Accordingly, any statement, questionnaire, or acknowledgment in the License Agreement that is not permitted under the Interpretive Opinion is deleted in its entirety and shall have no force or effect.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, franchise agreements in Maryland must include a specific statement regarding franchisee waivers or disclaimers, as mandated by an Interpretive Opinion from the State of Maryland Office of the Attorney General Securities Division. This opinion, dated January 23, 2023, concerns the use of franchise questionnaires and acknowledgments.
The required statement ensures that no agreement signed by a franchisee can waive claims under Maryland franchise law, including those related to fraud in the inducement. It also prevents franchisees from disclaiming reliance on statements made by Crowne Plaza, its sellers, or representatives. This provision takes precedence over any conflicting terms in the franchise agreement.
In practical terms, this means that Crowne Plaza franchisees in Maryland retain their rights under state franchise law, regardless of any waivers or disclaimers they may have signed. This protects franchisees from potentially overreaching franchisor actions and ensures they can pursue legal claims if necessary. Any statements, questionnaires, or acknowledgments within the License Agreement that do not comply with the Interpretive Opinion are considered void and unenforceable.