Regarding Dryer Vent Squad franchises in Maryland, does any representation requiring a prospective franchisee to release liability act as a waiver of liability under the Maryland Franchise Registration and Disclosure Law?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
Amendments to the Dryer Vent Squad Franchise Agreement:
In recognition of the requirements of the Maryland Franchise Registration and Disclosure Law, the parties to the attached DVS Holdings, Inc. Franchise Agreement (the "Franchise Agreement"), as follows:
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- All representations requiring prospective franchisees to assent to a release, estoppel or waiver of liability 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.
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- Each provision of this amendment shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the Maryland Franchise Registration and Disclosure Law are met independently without reference to this amendment.
Source: Item 23 — RECEIPTS (FDD pages 51–207)
What This Means (2024 FDD)
According to the 2024 Dryer Vent Squad Franchise Disclosure Document, specifically the Maryland Franchise Agreement Amendment, any representations that require prospective franchisees to release, estop, or waive liability are not intended to, nor will they act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. This amendment ensures that franchisees in Maryland retain their rights and protections under Maryland franchise law, regardless of any general releases or waivers they may be asked to sign.
This provision is crucial for prospective Dryer Vent Squad franchisees in Maryland because it clarifies that they cannot be forced to give up their legal rights under the Maryland Franchise Registration and Disclosure Law. This law is designed to protect franchisees from unfair practices by franchisors, and this amendment reinforces that protection. The amendment covers various scenarios, including renewal, sale, assignment, or transfer of the franchise, ensuring that the franchisee's rights are consistently protected.
Furthermore, the Dryer Vent Squad FDD includes an amendment to Article 18.G of the Franchise Agreement, allowing a franchisee to bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. It also specifies that any such claims must be brought within three years after the grant of the franchise, as stated in the amendment to Article 18.I. These stipulations provide additional clarity and protection for franchisees, ensuring they have a legal avenue to address any violations of the Maryland Franchise Registration and Disclosure Law within a defined timeframe.
In summary, the Maryland FDD Amendment to the Dryer Vent Squad Franchise Agreement explicitly states that no representation can act as a waiver of liability under the Maryland Franchise Registration and Disclosure Law. This offers significant protection to prospective franchisees by ensuring their rights under Maryland law are preserved and enforceable, regardless of any potentially conflicting terms in the standard franchise agreement.