What is the effect of the Maryland Addendum on a Dryject franchisee's ability to disclaim reliance on statements made by the franchisor?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 includes provisions that protect a franchisee's right to pursue claims under Maryland franchise law. Specifically, any statement, questionnaire, or acknowledgment signed by a Dryject franchisee cannot waive claims under Maryland franchise law, including claims of fraud. This also means a franchisee cannot disclaim reliance on statements made by Dryject, its franchise sellers, or anyone acting on Dryject's behalf. This protection supersedes any conflicting terms in any document related to the franchise agreement.
This addendum ensures that Dryject franchisees in Maryland retain their legal rights under Maryland's franchise laws, preventing them from inadvertently waiving these rights through standard franchise documents. This is particularly relevant in cases where a franchisee believes they were misled or defrauded during the franchise sales process. The addendum strengthens the franchisee's position by allowing them to hold Dryject accountable for representations made during the franchise sales process.
In practical terms, a prospective Dryject franchisee in Maryland can be more confident that their ability to seek legal recourse for misrepresentation or fraud is protected. This provision aims to create a fairer balance of power between the franchisor and franchisee, ensuring that franchisees are not pressured into relinquishing their legal rights as a condition of entering into the franchise agreement. This protection is specific to claims arising under Maryland franchise law and does not prevent Dryject from including other standard terms and conditions in the franchise agreement.