Does the Maryland Franchise Registration and Disclosure Law allow Dog Haus to require a prospective franchisee to waive liability as a condition of purchasing a franchise?

According to Dog Haus's 2025 Franchise Disclosure Document, the Maryland Franchise Registration and Disclosure Law prohibits Dog Haus from requiring a prospective franchisee to assent to any release, estoppel, or waiver of liability as a condition of purchasing a franchise. This means Dog Haus cannot include any clauses in their franchise agreement that would force a franchisee to give up their right to sue or hold Dog Haus liable for violations of Maryland franchise law as a prerequisite to buying the franchise.

To ensure compliance with Maryland law, the Dog Haus Franchise Agreement includes an addendum specifically for Maryland franchisees. This addendum clarifies that any representations requiring prospective franchisees to disclaim the occurrence or non-occurrence of acts that would violate the Maryland Franchise Registration and Disclosure Law, or to assent to a release, estoppel, or waiver of liability, are not intended to act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. This addendum is designed to protect the franchisee's rights under Maryland law.

Furthermore, the addendum states that any general release required as a condition of sale does not apply to any liability under the Maryland Franchise Registration and Disclosure Law. This ensures that franchisees retain their legal rights and protections under Maryland law, regardless of any other agreements or releases they may sign. This protection extends to claims arising under the Maryland Franchise Registration and Disclosure Law, for which franchisees have three years after the grant of the franchise to bring an action in Maryland.