Under Maryland law, as it pertains to the Exit franchise agreement, will the acknowledgments made by the franchisee in Section 41 be construed as a waiver of the franchisee's rights under the Maryland Franchise Registration and Disclosure Law?
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 acknowledgments made by the franchisee in Section 41 of the agreement will not be interpreted as a waiver of the franchisee's rights under the Maryland Franchise Registration and Disclosure Law, Md. Code Ann., Bus. Reg. § 14-201 et seq. Additionally, releases from liability and waivers described in Md. Comar 02.02.08.16L may be prohibited in the Exit franchise agreement.
This means that Exit franchisees in Maryland retain their rights under Maryland's franchise laws, and any attempt to waive those rights through acknowledgments in the franchise agreement will not be legally recognized. This provides an additional layer of protection for franchisees operating in Maryland, ensuring they can pursue legal remedies if necessary.
Prospective Exit franchisees in Maryland should be aware of this provision, as it reinforces their legal standing and rights under state law. It is advisable to consult with a legal professional to fully understand the implications of Maryland's franchise laws and how they apply to the Exit franchise agreement.