For Ella Cafe franchises in Maryland, what effect do statements or acknowledgements signed by a franchisee have on waiving claims under state franchise law?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
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- No statement, questionnaire or acknowledgement 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 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 24–33)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, specific protections are in place for franchisees in Maryland regarding waivers of claims under state franchise law. Any statement, questionnaire, or acknowledgement signed by a franchisee related to the start of the franchise relationship cannot waive claims under Maryland franchise law. This includes claims related to fraud in the inducement.
Furthermore, these documents cannot disclaim reliance on statements made by Ella Cafe, its franchise sellers, or anyone acting on the franchisor's behalf. This means that franchisees in Maryland retain their right to pursue claims based on misrepresentations or fraudulent statements made during the franchise sales process, regardless of any agreements they may have signed.
This provision explicitly overrides any conflicting terms in any document executed in connection with the franchise agreement. This ensures that the protections afforded by Maryland franchise law are upheld and cannot be circumvented by standard contractual language. This addendum provides additional protection to franchisees in Maryland, safeguarding their rights under state law and ensuring they are not unknowingly waiving important legal claims.