Regarding Expense Reduction Analysts, what is the effect of representations requiring prospective franchisees to assent to a release, estoppel, or waiver of liability under the Maryland Franchise Registration and Disclosure Law?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
ntical meanings in this Amendment. | | | | | | | | |
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- A franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
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- All representations requiring prospective franchisees to assent to a release, estoppel or waiver of liability are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.
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- Section 3.3(7) of the Agreement is amended by the addition of the following language to the original language that appears therein:
- "The general release required as a condition of renewal, sale, and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law."
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- Section 25.3(6) of the Agreement is amended by the addition of the following language to the original language that appears therein:
- "The general release required as a condition of renewal, sale and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure."
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- Section 33.4 of the Agreement is amended by the addition of the following language to the original language that appears therein:
- "This section shall not in any way abrogate or reduce any of your rights as provided for in Section 14-216(c)(25) of the Maryland Franchise Registration and Disclosure Law, including the right to submit matters to the jurisdiction of the Courts of Maryland."
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- Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise.
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- In the event of any conflict between the terms of this Amendment and the terms of the Agreement, the terms of this Amendment shall prevail.
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Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (REGIONAL FRANCHISEES) (FDD pages 52–57)
What This Means (2025 FDD)
According to the 2025 Expense Reduction Analysts FDD, any representations that require prospective franchisees in Maryland to agree to a release, estoppel, or waiver of liability will not act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. This means that even if a franchisee signs a document that appears to waive their rights, those waivers are not enforceable under Maryland law regarding franchise registration and disclosure.
Specifically, the Expense Reduction Analysts Franchise Agreement is amended to ensure that the general release required for renewal, sale, or transfer of the franchise does not apply to liabilities arising from the Maryland Franchise Registration and Disclosure Law. Furthermore, the agreement is amended to ensure that franchisees retain their rights under Section 14-216(c)(25) of the Maryland Franchise Registration and Disclosure Law, including the right to bring matters before Maryland courts.
Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the franchise is granted. In case of any conflict between the addendum and the original agreement, the terms of the addendum will take precedence. Each provision of the addendum is effective only to the extent that it independently meets the jurisdictional requirements of the Maryland Franchise Registration and Disclosure Law.