Regarding Deka Lash, do acknowledgments or representations made by the developer in the Area Developer Agreement act as a release, estoppel, or waiver of liability under the Maryland Franchise Registration and Disclosure Law?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
The acknowledgment or representations of the developer made in the Area Developer Agreement which disclaim the occurrence or acknowledge the non-occurrence of acts that would constitute a violation of the Franchise Law 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 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, the acknowledgments or representations made by the developer in the Area Developer Agreement do not act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. This means that even if a developer acknowledges certain conditions or makes representations in the agreement, those statements will not prevent them from pursuing claims under Maryland's franchise law. This protection is specifically designed to safeguard the developer's rights under Maryland law.
This provision ensures that Deka Lash developers operating in Maryland retain their full legal rights and protections under the Maryland Franchise Registration and Disclosure Law, regardless of any acknowledgments or representations they make in the Area Developer Agreement. This is particularly important because it prevents Deka Lash from using the agreement to limit or waive the developer's ability to bring claims related to violations of franchise law.
This addendum also states that any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise. This ensures that developers have a defined period to identify and address any potential violations of the law. This timeframe provides a balance between allowing sufficient time for claims to arise and ensuring that legal matters are addressed in a timely manner.
Furthermore, the Deka Lash addendum clarifies 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 statements made by the franchisor. This provision reinforces the protection of franchisees by preventing unintentional or coerced waivers of their legal rights.