What is the effect of the Maryland Addendum on the Dryject Franchise Agreement?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
MARYLAND ADDENDUM TO FRANCHISE AGREEMENT
This Addendum to Franchise Agreement is effective as of the date Franchisor and Franchise Owner execute the Franchise Agreement, and amends the Franchise Agreement as follows:
Section 7 (a) of the Franchise Agreement is amended by adding the following:
"Based upon the franchisor's financial condition, the Maryland Securities Commissioner has required a financial assurance. Therefore, all initial fees and payments owed by franchisees shall be deferred until the franchisor completes its pre-opening obligations under the Franchise Agreement."
Sections 6(f) and 28(d)(viii) of the Franchise Agreement say that the we may require you to sign a general release of claims as a condition of renewal or transfer of your franchise. Under Maryland law (COMAR 02.02.08.16L), this condition will not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
The Franchise Agreement and the Franchise Compliance Questionnaire are amended as follows:
"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."
A franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
Any claims arising under the Maryland Franchise Registration and Disclosure law must be brought within three years after the franchise is granted.
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
IN WITNESS WHEREOF, each of the undersigned has executed this Addendum as of the date first stated above.
[signatures on the following page]
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the Maryland Addendum modifies the standard franchise agreement for franchisees operating in Maryland. One key change addresses the initial fees. Due to Dryject's financial condition, the Maryland Securities Commissioner requires financial assurance, leading to a deferral of all initial fees and payments until Dryject completes its pre-opening obligations under the Franchise Agreement. This protects the franchisee's initial investment.
Additionally, the addendum addresses legal recourse. It states that a Dryject franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, and such claims must be brought within three years after the franchise is granted. The addendum also clarifies that no statement, questionnaire, or acknowledgment signed by the franchisee can waive claims under Maryland franchise law, including fraud in the inducement, or disclaim reliance on statements made by Dryject. This provision overrides any conflicting terms in other documents related to the franchise agreement.
Finally, the Maryland Addendum addresses the signing of a general release of claims as a condition of renewal or transfer of your franchise. Under Maryland law, this condition will not apply to any liability under the Maryland Franchise Registration and Disclosure Law. The Franchise Agreement and the Franchise Compliance Questionnaire are amended to reflect that 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.