exception

Notwithstanding anything to the contrary in the Degree Wellness Franchise Agreement, is any general release required of the franchisee intended to act as a release, estoppel, or waiver of liability under the Maryland Franchise Registration and Disclosure Law?

Degree_Wellness Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. 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.
    1. 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, any general release required of a franchisee is not intended to act as a release, estoppel, or waiver of liability under the Maryland Franchise Registration and Disclosure Law. The FDD states that any general release the franchisee is required to agree to will not act as a release, estoppel, or waiver of any liability Degree Wellness may have incurred under the Maryland Franchise Registration and Disclosure Law. This ensures that franchisees retain their rights and protections under Maryland law, regardless of any general release they might sign. This is further reinforced by the explicit statement that no provision in the franchise agreement, including acknowledgments or representations, shall be deemed a release or waiver of any right or obligation under the Maryland Franchise Registration and Disclosure Law.

Moreover, the Degree Wellness Franchise Agreement is amended to include language that protects 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 the jurisdiction of the Courts of Maryland. This amendment ensures that the franchisee's ability to seek legal recourse in Maryland is preserved, regardless of any conflicting terms in the standard agreement. The FDD also clarifies that any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise.

In addition, the FDD emphasizes that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on any statement made by Degree Wellness or its representatives. This provision supersedes any other term in any document executed in connection with the franchise, providing an additional layer of protection for franchisees. This ensures that franchisees cannot inadvertently waive their rights through standard paperwork or acknowledgments during the franchise commencement process.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.