Does the Maryland Franchise Registration and Disclosure Law prohibit Dog Haus from requiring a prospective franchisee to assent to a release of liability as a condition of purchasing a franchise?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
The Maryland Franchise Registration and Disclosure Law prohibits a franchisor from requiring a prospective franchisee to assent to any release, estoppel or waiver of liability as a condition of purchasing a franchise. All representations requiring prospective franchisees to disclaim the occurrence and/or non-occurrence of acts that would constitute a violation of the Maryland Franchise Registration and Disclosure Law or assent to a release, estoppel or waiver of liability 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 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the Maryland Franchise Registration and Disclosure Law does indeed prohibit 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 protection ensures that franchisees in Maryland cannot be forced to give up their rights under Maryland franchise law in order to buy a Dog Haus franchise. This applies to both the Franchise Agreement and the Area Development Agreement. Representations that might suggest a franchisee is disclaiming actions that would violate the Maryland Franchise Registration and Disclosure Law are not intended to act as a release of liability under that law. This ensures that franchisees retain their legal rights and protections under Maryland law, regardless of any general releases or waivers they might sign.
For prospective Dog Haus franchisees in Maryland, this means that any clause in the franchise agreement that appears to waive their rights or release Dog Haus from liability under Maryland franchise law is unenforceable. This provision aims to protect franchisees from being pressured into relinquishing their legal recourse.
Moreover, any general release required as a condition of sale does not apply to liability under the Maryland Franchise Registration and Disclosure Law. Franchisees can bring actions against Dog Haus in Maryland for claims arising under this law, and these claims must be brought within three years after the franchise is granted. This addendum ensures that Maryland franchisees have a local forum for resolving disputes related to their franchise agreement, and it sets a clear timeframe for legal action.