Under the Maryland Amendment, can acknowledgments or representations made by an Engel & Volkers franchisee in the franchise agreement act as a release, estoppel, or waiver of liability under the Maryland Franchise Registration and Disclosure Law?

According to Engel & Volkers' 2025 Franchise Disclosure Document, the Maryland Amendment explicitly addresses the enforceability of franchisee acknowledgments and representations within the franchise agreement concerning liability under Maryland's franchise law. Specifically, any statements made by the franchisee that disclaim violations or acknowledge the non-occurrence of actions that would violate the Maryland Franchise Registration and Disclosure Law will not serve as a release, estoppel, or waiver of liability under that law. This provision is designed to protect franchisees in Maryland from inadvertently waiving their rights under state franchise law through standard acknowledgments in the franchise agreement.

This means that even if an Engel & Volkers franchisee acknowledges certain conditions or makes representations in the franchise agreement, those acknowledgments cannot be used to prevent the franchisee from pursuing claims under Maryland's franchise law if violations occur. This protection ensures that franchisees retain their legal recourse under Maryland law, regardless of any potentially conflicting language in the franchise agreement. The amendment aims to prevent franchisors from using standard contract language to shield themselves from liability for actions that violate Maryland franchise law.

For a prospective Engel & Volkers franchisee in Maryland, this amendment provides an important safeguard. It ensures that the franchisee's ability to bring claims under the Maryland Franchise Registration and Disclosure Law remains intact, irrespective of acknowledgments or representations made within the franchise agreement. This protection is particularly relevant given that franchise agreements often contain numerous acknowledgments and representations by the franchisee. This provision offers a degree of security, ensuring that franchisees are not unknowingly relinquishing their rights under Maryland law.