What is the name of the Maryland law that protects Dryject franchisees from waiving certain liabilities?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the Maryland law that protects Dryject franchisees from waiving certain liabilities is the Maryland Franchise Registration and Disclosure Law. Specifically, the addendum to the franchise agreement for Maryland states that any condition requiring a franchisee to release, waive, or estop any liability will not apply to liabilities incurred under this law. This ensures that franchisees retain their rights and protections under Maryland franchise law, even if other agreements suggest otherwise.
This protection is significant for prospective Dryject franchisees in Maryland. It means that franchisees cannot be forced to give up their legal rights under the Maryland Franchise Registration and Disclosure Law, which covers important aspects of the franchise relationship. This includes claims related to fraud in the inducement, or reliance on statements made by Dryject or its representatives. The law aims to create a fairer balance of power between the franchisor and franchisee.
Furthermore, the FDD states that a franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. However, any claims arising under this law must be brought within three years after the franchise is granted. This statute of limitations is an important consideration for franchisees, as they must be aware of the timeframe in which they can pursue legal action.
In summary, the Maryland Franchise Registration and Disclosure Law provides crucial safeguards for Dryject franchisees in Maryland, preventing them from unknowingly or unwillingly waiving their rights and offering a legal avenue for resolving disputes within a defined period.