Under the Deka Lash franchise agreement, do franchisee acknowledgments or representations disclaiming violations of franchise law 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
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- The acknowledgment or representations of the franchisee made in the Franchise 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 a franchisee in the Franchise Agreement, which disclaim the occurrence or acknowledge the non-occurrence of acts that would constitute a violation of the Maryland 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. This protection is specifically outlined in the Maryland Addendum to the Franchise Agreement. This addendum takes precedence over any conflicting terms in the standard Franchise Agreement.
This provision ensures that Deka Lash franchisees in Maryland retain their rights and protections under Maryland franchise law, regardless of any acknowledgments or representations they make in the franchise agreement. This means that franchisees cannot inadvertently waive their rights to pursue claims against the franchisor for violations of Maryland franchise law based on statements made within the agreement.
Furthermore, the Maryland Addendum to the Disclosure Document reinforces this protection by stating that no statement, questionnaire, or acknowledgment signed by a franchisee in connection with the commencement of the franchise relationship shall waive any claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on any statement made by the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
In addition to these protections, the Maryland Securities Commissioner requires Deka Lash to maintain a surety bond due to the company's financial condition. This bond provides an additional layer of financial assurance for franchisees in Maryland, ensuring that funds are available to cover potential liabilities or damages arising from violations of the Maryland Franchise Registration and Disclosure Law.