What is the effect of the Maryland Addendum on a Dryject franchisee's ability to waive claims of fraud in the inducement?
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 the 2025 Dryject FDD, the Maryland Addendum specifically addresses the enforceability of waivers related to claims under Maryland franchise law. It clarifies that no statement, questionnaire, or acknowledgment signed by a Dryject franchisee can waive claims under Maryland franchise law, including claims of fraud in the inducement. This means that even if a franchisee signs a document that appears to waive such claims, that waiver will not be legally effective under Maryland law. This provision overrides any conflicting terms in other documents related to the franchise agreement.
This protection extends to disclaimers of reliance on statements made by Dryject, its sellers, or representatives. The Maryland Addendum ensures that franchisees cannot be prevented from pursuing legal action for fraud in the inducement based on statements made during the franchise sales process. This is a significant benefit for franchisees as it protects their right to seek legal recourse if they believe they were misled into investing in the Dryject franchise.
Furthermore, the Maryland Addendum includes a provision regarding releases of claims upon renewal or transfer of the franchise. It states that any condition requiring a franchisee to sign a general release of claims as a condition of renewal or transfer will not apply to any liability under the Maryland Franchise Registration and Disclosure Law. This ensures that Dryject franchisees in Maryland cannot be forced to waive their rights under Maryland franchise law in order to renew or transfer their franchise. This protection is consistent with the broader aim of the addendum to safeguard franchisees' rights under Maryland law.