Under the Maryland Franchise Registration and Disclosure Law, will provisions requiring a Degree Wellness franchisee to disclaim acts that would violate this law act as a release, estoppel, or waiver of liability?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- 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.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, provisions requiring a prospective franchisee to disclaim the occurrence or non-occurrence of acts that would violate the Maryland Franchise Registration and Disclosure Law will not act as a release, estoppel, or waiver of any liability incurred under that law. This means that Degree Wellness cannot enforce any agreement where a franchisee attempts to disclaim actions that would be a violation. This protects the franchisee's rights under Maryland law.
This protection ensures that franchisees are not forced into unknowingly relinquishing their legal rights. It specifically addresses concerns about Degree Wellness potentially including clauses that could be interpreted as the franchisee agreeing to excuse the franchisor from liability for unlawful actions.
For a prospective Degree Wellness franchisee in Maryland, this is a beneficial provision. It means that even if the franchise agreement contains language that seems to disclaim certain violations, those disclaimers will not be legally binding under Maryland's franchise law. Franchisees retain their right to pursue claims against the franchisor for violations of the Maryland Franchise Registration and Disclosure Law, regardless of any disclaimers they may have signed.