What is the effect of the Maryland Addendum on a Dryject franchisee's ability to waive claims under any applicable state franchise law?
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 in connection with starting the franchise cannot waive claims under any applicable state franchise law. This includes claims of fraud in the inducement or disclaiming reliance on statements made by Dryject or its representatives. This protection supersedes any conflicting terms in other franchise documents.
This means that Dryject franchisees in Maryland retain their legal rights under Maryland's franchise laws, regardless of any agreements they may sign. This is particularly relevant because franchise agreements often contain clauses that could be interpreted as limiting a franchisee's ability to sue the franchisor. The Maryland Addendum ensures that these clauses do not override the protections provided by Maryland law.
Furthermore, the addendum specifically addresses the signing of general releases of claims as a condition of renewal or transfer of the franchise. Under Maryland law, this condition will not apply to any liability under the Maryland Franchise Registration and Disclosure Law. This offers additional protection to Maryland franchisees, ensuring they do not inadvertently waive their rights when renewing or transferring their Dryject franchise.
In summary, the Maryland Addendum strengthens the legal position of Dryject franchisees in Maryland by preventing them from unintentionally waiving their rights under state franchise laws. This provides an added layer of security and recourse for franchisees operating in Maryland.