Are representations requiring prospective Expense Reduction Analysts franchisees to release liability intended to act as a waiver under the Maryland Franchise Registration and Disclosure Law?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
The general release required as a condition to renewal, sale, and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
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."
Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise.
Each provision of this Amendment shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the Maryland Franchise Registration and Disclosure Law are met independently without reference to this Amendment.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (REGIONAL FRANCHISEES) (FDD pages 52–57)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, representations requiring prospective franchisees in Maryland to release liability are not intended to act as a 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 release Expense Reduction Analysts from liability, it will not be considered a valid waiver under Maryland franchise law.
This protection extends to general releases required as a condition of renewal, sale, or assignment/transfer of the franchise. These releases will not apply to any liability arising under the Maryland Franchise Registration and Disclosure Law. This ensures that franchisees retain their rights and protections under Maryland law, even when signing standard release forms.
Furthermore, the Expense Reduction Analysts' Franchise Agreement is amended to include language that reinforces these protections. Specifically, the agreement is modified to ensure that no provision within it can reduce a franchisee's 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 conflicts between the amendment and the original agreement will be resolved in favor of the amendment, further solidifying the franchisee's rights.
Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise. Each provision of the amendment is effective only to the extent that the jurisdictional requirements of the Maryland Franchise Registration and Disclosure Law are met independently without reference to the amendment.