If the Exit franchise agreement is governed by Maryland law, are releases from liability and waivers described in Md. Comar 02.02.08.16L permitted in the agreement?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
If this Agreement is governed by the laws of the State of Maryland, then: (1) the acknowledgments made by Franchisee contained in Section 41 of this Agreement will not be construed to act as a waiver of Franchisee's rights under the Maryland Franchise Registration and Disclosure Law, Md.
Code Ann., Bus.
Reg. § 14-201 et seq.; and (2) the releases from liability and waivers described in Md.
Comar 02.02.08.16L may be prohibited in this Agreement.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, if the franchise agreement is governed by Maryland law, the releases from liability and waivers described in Md. Comar 02.02.08.16L may be prohibited in the agreement.
This means that certain clauses within the Exit franchise agreement that attempt to release the franchisor from liability or waive the franchisee's rights might not be enforceable under Maryland law. This is designed to protect franchisees from unknowingly giving up their legal rights.
For a prospective Exit franchisee in Maryland, this is a beneficial provision. It ensures that they retain certain legal protections and avenues for recourse, even if the franchise agreement contains language that seems to limit those rights. Franchisees should consult with a legal professional to fully understand their rights and obligations under Maryland law and how they interact with the franchise agreement.