Does the Maryland Amendment allow Degree Wellness to require a prospective franchisee to assent to a release of liability as a condition of purchasing a franchise?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Section 14-226 of the Maryland Franchise Registration and Disclosure Law, prohibits us from requiring a prospective franchisee to assent to any release, estoppel or waiver of liability as a condition of purchasing a franchise. Any provisions which requires a prospective franchisee to disclaim the occurrence and/or non-occurrence of acts that would constitute a violation of the Maryland Franchise Registration and Disclosure Law, in order to purchase a franchise 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.
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- Notwithstanding anything to the contrary set forth in the Agreement, any general release the Franchisee is required to assent to is not intended to nor shall it act as a release, estoppel or waiver of any liability we may have incurred under the Maryland Franchise Registration and Disclosure Law.
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- The Franchise Agreement is amended by the addition of the following language to the original language that appears in the choice of law language therein:
"This section shall not in any way abrogate or reduce any of your rights as provided for in Section 14-216(c)(25) of the Maryland Franchise Registration and Disclosure Law,
including the right to submit matters to the jurisdiction of the Courts of Maryland."
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, Maryland law prohibits Degree Wellness from requiring a prospective franchisee to assent to any release, estoppel, or waiver of liability as a condition of purchasing a franchise. This protection is specifically related to liabilities arising under the Maryland Franchise Registration and Disclosure Law.
The FDD clarifies that any provisions in the franchise agreement that might seem to require a franchisee to disclaim acts that would violate Maryland franchise law will not be interpreted as a release, estoppel, or waiver of liability under that law. Furthermore, any general release required of the franchisee will not act as a release, estoppel, or waiver of liability that Degree Wellness may have incurred under the Maryland Franchise Registration and Disclosure Law.
To further protect franchisees, the franchise agreement includes language ensuring that the franchisee's rights under Section 14-216(c)(25) of the Maryland Franchise Registration and Disclosure Law, including the right to submit matters to Maryland courts, are not diminished. The Franchise Agreement and Franchise Disclosure Document are amended to ensure that no release, assignment, novation, waiver or estoppel is required if it would violate the Maryland Franchise Registration and Disclosure Law. No statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on franchisor statements.