Regarding Dryject franchises in Maryland, what is the effect of any statement, questionnaire, or acknowledgment signed by a franchisee that waives claims under 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, specific protections are in place for franchisees in Maryland regarding waivers of claims under state franchise law. Any statement, questionnaire, or acknowledgment signed by a Dryject franchisee in connection with starting the franchise will not waive claims under Maryland franchise law. This includes claims related to fraud in the inducement or disclaiming reliance on statements made by Dryject or its representatives. This provision takes precedence over any conflicting terms in any document signed during the franchise commencement. This ensures that Maryland franchisees retain their rights and protections under state law, regardless of any agreements they may sign.
This protection is significant for prospective Dryject franchisees in Maryland as it prevents them from inadvertently relinquishing their legal rights through standard franchise agreements or related documents. It specifically addresses concerns about potential overreach by the franchisor, ensuring that franchisees can pursue legal remedies if they believe they have been misled or defrauded. The inclusion of 'fraud in the inducement' is particularly important, as it covers situations where a franchisee was persuaded to enter the agreement based on false or misleading information.
Furthermore, the Maryland addendum explicitly states that this provision supersedes any other term of any document executed in connection with the franchise. This means that even if other parts of the franchise agreement seem to suggest a waiver of rights, this specific clause will prevail, reinforcing the franchisee's protections under Maryland law. This clarity helps to avoid ambiguity and potential disputes over the interpretation of the franchise agreement.
In practical terms, this means that a Dryject franchisee in Maryland can rely on the protections afforded by the Maryland Franchise Registration and Disclosure Law, even if they have signed documents that appear to waive those rights. This provides an additional layer of security and recourse for franchisees who may encounter issues during the franchise term. It is advisable for prospective franchisees to carefully review all documents and understand their rights under Maryland law before signing any agreements.